CITY OF COLUMBUS
OHIO
COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended December 31, 2004
Issued by CITY AUDITOR HUGH J. DORRIAN
City of Columbus, Ohio
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2004
Issued by: City Auditor's Office
Hugh J. Dorrian, CPA City Auditor
City of Columbus, Ohio
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INTRODUCTORY SECTION
City of Columbus, Ohio
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2004
Table of Contents
INTRODUCTORY SECTION Exhibit Page No.
Table of Contents ...... 1 Letter of Transmittal...... 7 GFOA Certificate of Achievement...... 35 Organization Chart...... 36 List of Principal Officials...... 37 City Auditor's Staff...... 38
FINANCIAL SECTION
Independent Auditors' Report...... 39
Management’s Discussion and Analysis...... 41
Basic Financial Statements:
Government-wide Financial Statements: Statement of Net Assets...... 1 59 Statement of Activities ...... 2 60
Fund Financial Statements Balance Sheet – Governmental Funds...... 3 62 Reconciliation of the Balance Sheet to the Statement of Net Assets – Governmental Funds ...... 3.1 63 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ...... 4 64 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities – Governmental Funds...... 4.1 65 Statement of Net Assets – Proprietary Funds ...... 5 66 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds ...... 6 67 Statement of Cash Flows – Proprietary Funds...... 7 68 Statement of Fiduciary Assets and Liabilities– Fiduciary Funds ..... 8 70
Notes to the Financial Statements A. Summary of Significant Accounting Policies...... 72 B. Commitments and Contingencies ...... 82 C. Cash and Investments ...... 83 D. Receivables...... 88 E. Due From and Due To/Interfund Receivables and Payables... 90 F. Capital Assets...... 92 G. Bonds, Notes, and Loans Payable...... 93
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City of Columbus, Ohio
Notes to the Financial Statements (Continued) Exhibit Page No.
H. Electricity...... 108 I. Property Leased to Others ...... 110 J. Lease Commitments and Leased Asset...... 111 K. Pension Plans...... 112 L. Income Taxes...... 117 M. Property Taxes...... 117 N. Deficit Fund Equities...... 118 O. Miscellaneous Revenues...... 118 P. Transfers...... 119 Q. Joint Ventures: Columbus Regional Airport Authority, Franklin Park Conservatory Joint Recreation District, and Columbus/Franklin County Affordable Housing Trust Corporation...... 120 R. Component Units: Columbus Urban Growth Corporation and The RiverSouth Authority ...... 123 S. Restatement of Beginning Net Assets for Business-type Activities……………………………………... 126
Required Supplementary Information ...... 127
Budgetary Comparison Schedule – General Fund...... 9 129 Notes to the Required Supplementary Information ...... 130
Supplementary Information...... 133
Major Governmental Funds: ...... 135
Schedule of Expenditures – Budget and Actual Budget Basis
• General Fund...... A-1 136
Schedules of Revenues, Expenditures and Changes in Fund Balances– Budget and Actual–Budget Basis
• General Bond Retirement ...... A-2 141 • Special Income Tax...... A-3 142
Other Governmental Funds: ...... 143
Combining Balance Sheet – Nonmajor Governmental Funds...... B-1 146
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds...... B-2 147
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City of Columbus, Ohio
Supplementary Information (Continued) Exhibit Page No.
Schedules of Revenues, Expenditures, and Changes in Fund Balances– Budget and Actual–Budget Basis
• HOME Program...... B-3 172 • HOPE Program...... B-4 172 • Cable Communications...... B-5 173 • HUD Section 108 Loans...... B-6 173 • Fannie Mae Loans...... B-7 174 • Land Management ...... B-8 174 • Law Enforcement...... B-9 175 • General Government Grants ...... B-10 176 • Area Commissions...... B-11 178 • Local Law Enforcement Block Grant ...... B-12 178 • Special Purpose...... B-13 179 • Mayor’s Education Charitable Trust...... B-14 180 • Drivers Alcohol Treatment ...... B-15 181 • Municipal Court Special Projects ...... B-16 181 • Municipal Court Clerk...... B-17 182 • Columbus Community Relations...... B-18 182 • Housing/Business Tax Incentives...... B-19 183 • Hester Dysart Paramedic Education ...... B-20 183 • Hotel-Motel Tax...... B-21 184 • Emergency Human Services...... B-22 184 • Private Leisure Assistance for Youth ...... B-23 185 • Tree Replacement ...... B-24 185 • Gatrell Arts and Vocational Rehabilitation...... B-25 186 • Columbus Housing ...... B-26 186 • Neighborhood Economic Development...... B-27 187 • Fire Quarter Master Incentive Travel...... B-28 187 • Development Services...... B-29 188 • Urban Development Action Grants...... B-30 189 • Community Development Act...... B-31 190 • Health...... B-32 192 • Health Department Grants...... B-33 192 • County Auto License...... B-34 193 • Street Construction Maintenance & Repair ...... B-35 193 • Municipal Motor Vehicle Tax...... B-36 194 • Treasury Investment Earnings...... B-37 194 • Golf Course Operations...... B-38 195 • Recreation & Parks Operations...... B-39 196 • Recreation & Parks Grants...... B-40 196 • Private Grants...... B-41 197 • Urban Site Acquisition Loan Fund ...... B-42 198 • Collection Fees...... B-43 198 • City Attorney Mediation Fund...... B-44 199 • Environmental Fund...... B-45 200 • Citywide Training Entrepreneurial Fund...... B-46 200 • Easton TIF...... B-47 201 • Polaris TIF...... B-48 201 3
City of Columbus, Ohio
Supplementary Information (Continued) Exhibit Page No.
• Tuttle Crossing TIF...... B-49 202 • Nationwide Pen Site TIF...... B-50 202 • Nationwide Off Sites TIF...... B-51 203 • Miranova TIF...... B-52 203 • Crewville TIF...... B-53 204 • Brewery District TIF...... B-54 204 • Waggoner Road TIF...... B-55 205 • Recreation Debt Service...... B-56 205 • Capitol South...... B-57 206
Internal Service Funds:...... 207
Combining Statement of Net Assets ...... C-1 208
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets...... C-2 209
Combining Statement of Cash Flows...... C-3 210
Fiduciary Funds—Agency Funds:...... 213
Schedule of Changes in Assets and Liabilities–Agency Funds Individual Fund Grouping...... D-1 214
Table No. Page No. STATISTICAL SECTION Statistical Section Description...... 215 Financial Trends Net Assets by Component ...... 1 217
Changes in Net Assets ...... 2 218
Fund Balances, Governmental Funds...... 3 220
Changes in Fund Balances, Governmental Funds ...... 4 221 Revenue Capacity Income Tax by Payer Type and Income Tax Revenue Fund Distribution...... 5 222
Property Tax Levies and Collections...... 6 223
Assessed and Estimated Actual Value of Taxable Property...... 7 224
Property Tax Rates–Direct and Overlapping Governments ...... 8 225
Principal Property Taxpayers–Franklin County...... 9 226
Special Assessment Billings and Collections...... 10 227 4
City of Columbus, Ohio
Table No. Page No. STATISTICAL SECTION (Continued) Debt Capacity Statement of Legal Debt Margins...... 11 228
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita...... 12 229
Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures...... 13 230
Computation of Direct and Overlapping Debt...... 14 231
Enterprise Bond Coverage: Water Revenue, Refunding Series 1999...... 15 232 Sanitary Sewer Revenue, Refunding Series 1992, 1994, and 2002...... 16 233
Demographic and Economic Information Business Indicators 1995–2004...... 17 234
Growth in Land Area, Selected Years ...... 18 235
Largest Employers in the Greater Columbus Area...... 19 236
Estimated Civilian Labor Force and Annual Average Unemployment Rates 1995–2004...... 20 237
Estimated Per Capita Income 1995–2004...... 21 238
Columbus Metropolitan Statistical Area Employment–1995–2004...... 22 239
School Enrollment Trends in Franklin County–1995–2004...... 23 240
City of Columbus and Franklin County, Ohio–Land Area ...... 24 241
Exempted Real Property in Franklin County–1995–2004 ...... 25 242
Salaries of Principal Officials...... 26 243
Surety Bond Coverage...... 27 243
Comparison of Building Permits Issued 1995–2004...... 28 244
Average Cost of Housing Construction 1995–2004...... 29 245
Operating Information Operating Indicators and Capital Asset Statistics...... 30 246
Compliance Information – Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)...... 31 247
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City of Columbus, Ohio
SINGLE AUDIT SECTION Exhibit Page No.
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ...... 255
Independent Auditors' Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and Schedule of Receipts and Expenditures of Federal, State, and County Awards ...... 257
Schedule of Receipts and Expenditures of Federal, State, and County Awards...... F-1 259
Notes to Schedule of Receipts and Expenditures of Federal, State, and County Awards...... 267
Schedule of Findings and Questioned Costs ...... 271
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HUGH J. DORRIAN City of Columbus ROBERT L. MCDANIEL
CITY AUDITOR OHIO DEPUTY CITY AUDITOR 614 / 645-7615 FAX: 614 / 645-8444 90 WEST BROAD STREET COLUMBUS, OH 43215
April 20, 2005
To the Citizens of the City of Columbus, Ohio:
The Comprehensive Annual Financial Report (CAFR) of the City of Columbus, Ohio (the City) for the fiscal year ended December 31, 2004 is hereby presented to its citizens by their City Auditor, statutorily described as the City's chief accounting officer.
INTRODUCTION
The City's Charter states, "The auditor shall be an elector of the City, and be elected for a term of four years . . ." The Charter also sets forth the auditor's powers and duties and states, in part:
The auditor shall be the city's chief accounting officer. He shall keep, in accurate, systematized detail a record of the receipts, disbursements, assets, and liabilities of the city, and the recorded facts shall be presented periodically to officials and to the public in such summaries and analytical schedules as shall be necessary to show the full effect of such transactions for each fiscal year upon the finances of the city and in relation to each department of the city government, including distinct summaries and schedules for each public utility owned or operated.
This report fulfills these duties and is distributed to approximately 500 recipients, which include civic associations, banks, brokers, rating agencies, schools, libraries, university students, and city, state and federal officials. This report is also available on the City's website. The Internet address is http://www.cityofcolumbus.org.
The City's management, defined and described in the following paragraph, is responsible for the accuracy of the data contained in this report. The responsibility for completeness, fairness of presentation, and full disclosure of the data also rests with the City's management.
The management:
The City's management consists of a Mayor, seven-member Council, City Auditor, and City Attorney. These officials are elected for four- year terms on an at-large basis. The Mayor and four Council members are elected in an odd numbered year. Three Council members, the City Auditor, and the City Attorney are elected in the following odd numbered year. The City's Charter also provides for appointments and elections of successors to these officials if they should, for any reason, vacate their office. All are chosen through a non-partisan election process.
In addition to the elected officials, certain others are major participants in the City's management. The Director of the Department of Recreation and Parks, the Health Commissioner, the Civil Service Executive Secretary, and the Secretary of the Sinking Fund are appointed by, and report to, independent Commissions. All of these Commission members are appointed by the Mayor and are subject to confirmation by the Council. The financial activities of these Commissions (budgets, expenditures, etc.) are subject to approval by the Council and are, therefore, included in this report. The City's Treasurer and Clerk to the Council are appointed by, and serve at the pleasure of the Council.
The Mayor's cabinet, appointed by him and serving at his pleasure, is not subject to confirmation by the Council. In 2004 the cabinet consisted of the directors of the departments of Public Safety, Public Service, Finance, Public Utilities, Development, Technology, Equal Business Opportunity, Human Resources, Community Relations, and Education.
The City Auditor believes that, to the best of his knowledge, the data contained in this report present fairly the financial position and results of operations of the various funds of the City. All necessary disclosures are included in this report to enable the citizens and other readers to understand the City's financial activities.
7 The report:
This transmittal letter is designed to provide historical information about the City, as well as compliment the required Management’s Discussion and Analysis. Generally accepted accounting principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The City’s MD&A, which focuses on the government-wide statements, can be found in the Financial Section of this report.
This Comprehensive Annual Financial Report (CAFR) is designed in a manner to assist and guide the reader in understanding its contents. The report consists of four sections:
• The Introductory Section, which includes this letter of transmittal, contains information pertinent to the City's management and organization. References in this section to Note A, Note B, etc., are to Notes to the Financial Statements contained in the Financial Section of this report.
• The Financial Section contains the Independent Auditor’s Report, Management’s Discussion and Analysis, Basic Financial Statements, Required Supplementary Information, and various other Statements and Schedules pertaining to the City’s funds and activities.
• The Statistical Section contains numerous tables of financial and demographic information. Much of this information is shown with comparative data for the ten-year period from 1995 through 2004. Also in this section are data necessary to meet the disclosure requirements of Rule 15c2-12(b)(5)(i)(C) and (D) of the Securities and Exchange Commission (SEC).
• The Single Audit Section, in accordance with the federal Single Audit Act of 1996, includes the following:
• Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance With Government Auditing Standards • Independent Auditors' Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and Schedule of Receipts and Expenditures of Federal, State, and County Awards • Schedule of Receipts and Expenditures of Federal, State, and County Awards • Notes to Schedule of Receipts and Expenditures of Federal, State, and County Awards • Schedule of Findings and Questioned Costs
The reporting entity: Columbus was first organized as a borough in 1816 and subsequently became a city on March 3, 1834. The City is a home-rule municipal corporation operating under the laws of Ohio. The City's Charter, its constitution, can only be amended by a majority of the City's voters. It has been amended many times since its original adoption in 1914, most recently on November 2, 1999. The laws of the State of Ohio prevail when conflicts exist between the Charter and the state constitution and in matters where the Charter is silent. Columbus, Ohio's capital city, is located in the central part of the state, approximately 150 miles south of Cleveland and 110 miles northeast of Cincinnati. The City's elevation is approximately 777 feet above sea level. Inter and intra state highways I-70, I-71, I-270, and I-670 serve as some of the City's major transportation arteries. The Ohio State University, with 50,731 students on its Columbus campus, is located near the center of the City. Columbus was ranked as the nation's 15th largest city as a result of the 2000 census.
Some comparative data for Ohio's six largest cities follow. Population estimates for 1980, 1990, and 2000 are from the U.S. Bureau of Census. The Mid Ohio Regional Planning Commission estimates Columbus’ population at 754,876 at December 31, 2004. The respective cities’ management provided area data as of December 31, 2004.
Area Population City 2004 2000 1990 1980 Columbus 224.2 sq. mi. 711,470 632,910 565,021 Cleveland 77.9 sq. mi. 478,403 505,616 573,822 Cincinnati 78.8 sq. mi. 331,285 364,040 385,410 Toledo 84.3 sq. mi. 313,619 332,943 354,635 Akron 62.4 sq. mi. 217,074 223,019 237,177 Dayton 56.3 sq. mi. 166,179 182,044 193,536
8 The accompanying financial statements comply with the provisions of Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity and Statement No. 39, Determining Whether Certain Organizations are Component Units. On this basis, the reporting entity of the City includes the following services to its citizens as authorized by its charter: public service (refuse collection, street engineering and construction, traffic engineering and parking, etc.), public safety (fire, police, etc.), development, health, recreation and parks, and public utilities. In addition, the City owns and operates four enterprise activities: a water system, a sanitary sewer system, a storm sewer and drainage system, and an electricity distribution system; financial activities for which are contained in this report. Water and sanitary sewer services are metropolitan in nature and reach far beyond the City's corporate boundaries. The City does not operate schools or hospitals, nor is it responsible for public assistance programs.
Other entities included in this report and further explained in Notes A, Q and R are: Joint Ventures: • Columbus Regional Airport Authority • The Franklin Park Conservatory Joint Recreation District • Columbus/Franklin County Affordable Housing Trust Corporation Component Units: • Columbus Urban Growth Corporation • The RiverSouth Authority
Information regarding reporting standards and bases of accounting used in the preparation of the City’s financial statements can be found in Note A – Summary of Significant Accounting Policies in Notes to the Financial Statements.
ECONOMIC CONDITIONS AND EMPLOYMENT
The traditional stability of the City’s economy continued to be tested in 2004. Average annual unemployment rates (4.8%) for 2004 continued to be well below the State of Ohio (6.0%) and the United States (5.5%) rates. The following data from the Ohio Department of Job and Family Services is a five-year history of unemployment rates for Franklin County (by month) and the Annual Average Rates for Franklin County, the State of Ohio, and the United States. Unemployment Rates (%, except for Average Columbus MSA employment base) 2004 2003 2002 2001 2000 Franklin County: January 5.0 4.8 4.0 2.6 2.5 February 4.9 5.0 4.2 2.4 2.7 March 4.7 5.0 4.4 2.2 2.6 April 4.7 4.8 4.3 2.1 2.2 May 4.6 5.0 4.5 2.3 2.3 June 5.2 5.5 5.0 3.0 2.8 July 4.8 4.8 4.5 2.7 2.4 August 4.8 4.5 4.6 2.9 2.5 September 4.9 4.7 4.8 3.2 2.7 October 5.0 4.2 4.5 3.0 2.4 November 5.0 4.2 4.4 3.3 2.3 December 4.3 4.0 4.1 3.1 2.1 Annual Average Rates: Franklin County 4.8 4.7 4.4 2.8 2.4 State of Ohio 6.0 5.9 5.7 4.3 4.1 United States 5.5 6.0 5.8 4.8 4.0
Average Columbus MSA 845,200 848,100 843,900 850,900 847,100 employment
The City’s General Fund balance (budget basis) reached an all time historic high at calendar year 1999 of $70.880 million. It declined in 2000 to $65.838 million, rebounded in 2001 to $67.216 million, but declined again in 2002 to $50.368 million and in 2003 to $39.382 million. In 2004, the General Fund balance (budget basis) increased to $88.048 million primarily due to the receipt of $55.1 million from the Solid Waste Authority of Central Ohio (SWACO) for partial satisfaction of lease rental payments, most of which were delinquent, due to the City. This transaction is fully described in Note H.
The City continues to maintain assets within the General Fund designated for future year's expenditures. This portion of the General Fund consists of unencumbered cash in two subfunds contained in the General Fund. These subfunds, available for General Fund purposes at the discretion of Council, are the Economic Stabilization Fund (the "rainy day" fund) and the Anticipated Expenditure Fund. Council
9 determined in 1994 that the Economic Stabilization Fund is entitled to a proportionate share of interest earnings from the City's investment pool described in this letter under Cash Management and in Note C. The amounts in these subfunds over the last ten years follow:
Budget Basis (in thousands) Economic Anticipated Undesignated stabilization expenditures Total General Year Ended subfund subfund subfund Fund 1995 $ 25,245 $ 10,022 $ 1,050 $ 36,317 1996 18,064 11,725 1,800 31,589 1997 26,000 13,515 2,550 42,065 1998 37,949 22,583 8,920 69,452 1999 37,557 23,807 9,516 70,880 2000 30,811 25,250 9,777 65,838 2001 29,794 26,870 10,552 67,216 2002 11,060 28,006 11,302 50,368 2003 8,958 18,372 12,052 39,382 2004 21,678 53,568 12,802 88,048
The Economic Stabilization Fund was established in 1988. The first usage of the fund occurred in 2003. The Anticipated Expenditure Fund was established in 1994.
Employment in the Greater Columbus Area continues to be service oriented. Eight of the eleven (11) largest employers in the Columbus area are government or government-oriented (the State of Ohio, The Ohio State University, United States Postal Service, Defense Supply Center – Columbus, Defense Finance and Accounting Service – Columbus, Columbus Public Schools, City of Columbus, and Franklin County). The fifty largest employers in the Greater Columbus area are shown in the Statistical Section of this report. These major employers, representing government, insurance, public utilities, manufacturing, retail, banking, research, medical, and services, provide a broad and diverse employment base.
Employee relations:
The City’s employee relations are established largely in association with the following labor organizations:
• American Federation of State, County, and Municipal Employees (AFSCME), Locals 1632 and 2191. (www.afscme.org)
AFSCME has approximately 2,320 members among the City’s 4,954 civilian employees. AFSCME has, however, bargaining rights for approximately 2,665 of these employees. The current labor agreement between the City and AFSCME was effective April 1, 2005 and continues through March 31, 2008.
• Fraternal Order of Police (FOP) (www.fop9.org)
FOP has bargaining rights for all of the City’s police officers except for the chief and his five deputy chiefs. Of the City’s 1,842 police officers, 1,767 are members of the FOP. The contract between the City and FOP has an expiration date of December 3, 2005.
• International Association of Firefighters (IAFF) (www.iaff.org)
IAFF has bargaining rights for all the City’s firefighters except for the chief and one of his five assistant chiefs. Membership in the IAFF includes 1,510 of a total 1,546 firefighters. The current contract was effective June 1, 2004 and continues through May 31, 2007.
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• Columbus Municipal Association of Government Employees; Communication Workers of America, Local 4502 (CMAGE/CWA).
CMAGE/CWA has approximately 860 members and has bargaining rights for approximately 1,206 of the 4,954 civilian employees. The current contract was effective August 24, 2002 and continues through August 23, 2005.
Under Ohio’s Collective Bargaining Act, if members of the police or fire division cannot reach agreement with the City they “shall submit the matter to a final offer settlement procedure.” This requirement of Ohio law is referred to as a “no-strike” or “binding arbitration” provision. Other employees are permitted to strike under Ohio law after giving proper notification.
MAJOR INITIATIVES
Current Projects and Service Efforts and Accomplishments
Cost containment efforts
The City continues its cost containment efforts, particularly in light of the modest economic improvement in the region. Expenditures and transfers out of the General Fund in 2004; $543,021 million (GAAP); were only 2.35% more than the comparable expenditures and transfers out in 2003 of $530,552.
This cost containment resulted primarily from personnel reductions. The number of civilian employees of the City; not police officers or firefighters; at December 31, 2004 was 4,954; 199 less than the 5,153 at December 31, 2003 and 470 less than the 5,424 at December 31, 2002. The following table demonstrates the decline in hours worked, fulltime equivalent employees based on a 2,080 hour work year and changes since 2001.
2004 2003 2002 2001 Hours worked (in thousands): General Fund (includes police and fire) 11,253 11,687 12,180 12,593 Health funds 646 830 875 905 Recreation and parks funds 1,276 1,348 1,526 1,592 All other funds 5,217 4,942 4,848 4,665 Total 18,392 18,807 19,429 19,755
Full time equivalent employees: General fund (includes police and fire) 5,410 5,619 5,856 6,054 Health funds 311 399 421 435 Recreation and parks funds 613 648 734 765 All other funds 2,508 2,376 2,330 2,243 Total 8,842 9,042 9,341 9,497
Year to year change, increase (decrease), of fulltime equivalent employees: General Fund (includes police and fire) (209) (237) (198) - Health funds (88) (22) (14) - Recreation and parks funds (35) (86) (31) - All other funds 132 46 87 - Total (200) (299) (156) -
Recreation and Parks Department The Columbus Recreation and Parks Department works to create and maintain an enjoyable, safe, and healthful environment for residents and visitors. The department also promotes the preservation and wise use of natural resources as well as the enhancement of the local economy through parks, recreation programs, and special events. All of this is accomplished through the department’s vision of providing leisure opportunities for all …something for everyone…naturally.
During 2004, the department raised over $340,000 in revenue to fund the summer camp programs, reported 23,864 volunteer
11 instances totaling 190,826 volunteer hours toward projects for the department at a value of approximately $2.7 million, which is not reflected in the City’s financial statements. Approximately 3,100 Columbus children from low-income families were able to participate in the department’s fee-based activities with sponsorship and grants received by the department.
Special recognitions throughout the year included receiving the “Tree City Award” for the 25th consecutive year, and designation as a regional director with the National Softball Association allowing us to schedule tournaments for youth baseball, girls’ fast pitch, and senior men’s softball, which will increase revenues for the department. Construction was completed on the Spindler Road Soccer Facility, the $2.2 million renovation to Beatty Recreation Center, 6.5 miles of multi- use trails, initial construction of North Bank Park along the downtown riverfront and two new recreation centers – Dodge on the near west side and Lazelle Woods on the far north side – both to be completed by the end of 2005, and the addition of 150 acres to the city park system.
Highlights of programming included partnerships to provide recreational opportunities for those with special needs, continued production of “Festival Latino” with an attendance of approximately 300,000 and event sponsorships of approximately $358,000 and in-kind goods and services of approximately $326,000, serving more than 6,700 kids in outdoor education camps and programs in conjunction with area schools, celebrating the 50th anniversary of the Raymond Memorial Golf Course, and providing over $42 million in services to older adults and families through the Central Ohio Area Agency on Aging.
Columbus Division of Police The Division remains dedicated to improving the quality of life in Columbus by enhancing public safety through cooperative interaction with our community and private agencies. In 2004, the Division constantly adapted to meet the needs of our changing society. A new state-of-the-art police academy opened for the 108th recruit class in December 2004. The new academy will likely become a revenue generator by serving as a regional training academy for other agencies. Homeland Security Funds were used to purchase new gas masks and protective gear for all officers. This equipment is essential in providing safety against chemical and toxic hazards.
Drug seizure monies permitted the purchase of 200 tasers for patrol officers. Officers have employed these new tasers to obtain control of dangerous individuals, as opposed to engaging in dangerous physical confrontations or using deadly force. A Community Oriented Policing Services grant of approximately $2.5 million funded upgraded dispatching consoles and radio equipment for the police communications center. Grant funding will also be used to construct a new North Tower 800 MHz radio tower and to upgrade our five existing main tower sites. These grants have made our goal of implementing interoperability communications in Franklin and surrounding counties possible. In another cooperative funding effort, the city agreed with The Ohio State University to jointly build a neighborhood policing station in The Ohio State University area.
Columbus' overall crime rate continues to be low due to bike patrol, strict traffic enforcement, up-to-date technology, and experienced and well-trained personnel. Our award winning crime lab provides technical and scientific support for investigations involving DNA, narcotics, and ballistics. The lab began working toward a re-accreditation assessment in February 2005. A Crisis Management Team of volunteer patrol officers and sergeants was created to proactively interact with individuals suffering from mental illness. In addition, over 200 citizens graduated from our intensive Safety Academies that teach crime, fire and medical safety procedures, as well as neighborhood and home security measures.
PROSPECTS FOR THE FUTURE
The City of Columbus entered the 21st Century ascending the ranks of America’s largest municipalities, with a balanced budget, growing population and economic growth, and a history of strict fiscal management.
These factors allowed the City to weather the national financial downturn, albeit with little spending growth, and, as Columbus enters its Fiscal Year for 2005, the City continues to provide a high level of quality public services.
Columbus’ financial stability is due to implementing and managing through a series of policy decisions beginning under the administration of Mayor Jack Sensenbrenner nearly 50 years ago. The policy which promoted stable growth of the City and economy through controlled delivery of services with annexation remains in place to this day and has been supplemented with several new policies which will allow Columbus to continue to thrive into the future.
The first supplemental policy that will assure Columbus financial stability and bring greater developmental balance to the region was the establishment of a dedicated revenue stream to Capital Infrastructure investments through the Special Income 12 Tax (SIT). One fourth (.50%) of the City’s current 2.0% income tax rate is dedicated to a debt service fund for non-enterprise, governmental type capital improvements. This commitment was established in 1956 and has allowed Columbus to make critical investments in growth corridors as well as older core neighborhoods. The use of the SIT for long-term capital investment has also allowed the City to protect its “Triple A” credit rating, saving taxpayers millions of dollars.
The second supplemental policy was the dedication of a stream of revenue through the Hotel Bed Tax to invest into the Affordable Housing Trust Fund. This long-term commitment has been joined by Franklin County, and has added millions of dollars to invest in creating more quality, affordable housing for residents. Enabling more families to buy homes or rent affordable apartments allows for greater neighborhood investment and is helping stabilize the housing stock in many areas which had seen a generation of disinvestment.
The third supplemental policy is truly innovative, as the Administration of Mayor Michael B. Coleman works to implement Pay as You Grow in Columbus’ key growth corridors on the northwest, southeast, and northeast corners of the City. These policies were put in place as the City and region prepare for continued population growth. By establishing growth plans and early investment standards requiring private development to fund critical infrastructure needs, the City will both reduce the burden on the existing capital budget and ensure that new growth areas create added revenue to invest into older neighborhoods. Too many cities have seen growth and development drain resources from core neighborhoods, or waited years before the infrastructure could be built to catch up with residential and commercial growth. The Pay as You Grow policies will allow new neighborhoods to be built at the same time as the needed infrastructure of roads, schools, parks, and safety services are developed. The policy will also ensure that all parties in the new development pay their fair share for the cost of the infrastructure and City operations. Such policies are designed to allow for Columbus to continue its stable and sustainable growth.
Administrations, Councils, and the actively engaged civic organizations from across the City have been partners in building Columbus for the 21st Century, and these responsible policies will continue to ensure the City’s economic success for future generations.
At this time, Columbus continues to operate with more than $50 million in the City’s Economic Stabilization (Rainy Day) Fund, a component of the City’s General Fund. Unemployment continues to be low compared to the State and similar cities, and Columbus is aggressively working to attract new businesses, jobs, and private investment into growth corridors and downtown. Stability of the City’s workforce, due to its high government, education, and other service-oriented employment sectors, would indicate a continuance of stable employment. While the public and private sectors continue to offer economic opportunities, Columbus also is home to an educational infrastructure that will allow it to be a leader in future innovation and job development, including The Ohio State University, Columbus State Community College, Ohio Dominican University, Franklin University, Otterbein College, DeVry Institute, Columbus College of Art and Design, Capital University, and others.
FINANCIAL INFORMATION
Accounting system and budgetary control:
The City's Charter states that the Mayor and the Auditor, officials separately elected and independent of each other, shall supervise all departmental expenditures and shall keep such expenditures within appropriations. The Auditor performs a pre-audit of the City's expenditures. Post-audits are performed by independent certified public accountants, not only of the City's financial activities, but also of grant monies expended by various private and quasi-public agencies acting as subgrantees of the City.
The Charter mandates other checks and balances. The most important of these, as it relates to the City's financial stability and credit worthiness, states that no contract, agreement, or other obligation involving the expenditure of money shall be entered into, nor shall any legislation be passed by the Council, unless the Auditor first certifies that money required for the obligation is in the Treasury to the credit of the fund from which the expenditure is to be paid, or is in the process of collection. The City's fiscal accounting system also provides for checks and balances between the Auditor and the Treasurer.
13 Budgetary control is maintained at Object Level One for each division within each fund via legislation approved by the Council. The various objects are: 01 Personal services 05 Other 02 Materials and supplies 06 Capital outlay 03 Contractual services 07 Interest on debt 04 Debt principal payments 10 Transfers
Lower object levels two and three are accounted for and reported internally. Estimated amounts must be encumbered prior to release of purchase orders or other contracts to vendors. Encumbrances in excess of the available object level one appropriation are not approved unless additional appropriations are authorized. Except for Capital Projects Funds and grants (initial appropriations continue until expended or modified by Council), unencumbered appropriations lapse at the end of each fiscal (calendar) year.
The City's management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met.
The Council authorizes appropriations, both original and supplemental. Appropriations are further explained in Notes to Required Supplementary Information.
Internal controls:
Internal controls begin with separation of powers; separately elected officials such as Mayor, Council, City Attorney, and City Auditor. A structure of departments and divisions where duties are separated to the extent practicable also provides controls. An independent Civil Service Commission establishes hiring (and firing) policies for classified employees. Disbursements by the Treasurer can only be pursuant to a warrant of the City Auditor. Warrants can only be issued pursuant to written authorization of a department director. These and other control features are prescribed by the City's Charter.
14 General Fund:
The growth in both population and land area that the City experiences continues to exert demands for its services. The General Fund balance at December 31, 2004 equates to 19.2% (GAAP) of expenditures and transfers out for 2004. A five-year comparison of its General Fund activity follows. Five-year comparisons, as compared to a shorter period, will assist the reader in more meaningful analyses. The revenues, expenditures, and changes in fund balance shown in these comparisons are presented on the modified accrual basis of accounting as applicable to government.
General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance 2000-2004 (in thousands)
2004 2003 2002 2001 2000 Revenues: Income taxes $ 343,982 329,077 326,612 326,259 315,610 Property taxes 45,891 45,660 41,520 40,881 39,049 Investment earnings 6,754 7,783 13,260 27,060 32,745 Licenses and permits 2,090 957 1,150 11,538 10,700 Shared revenues 55,924 57,170 56,679 61,932 61,982 Charges for services 37,632 33,961 27,794 26,758 27,099 Fines and forfeits 17,751 17,091 15,522 12,924 12,591 Miscellaneous 71,055 5,445 8,575 5,651 11,234 Total revenues 581,079 497,144 491,112 513,003 511,010
Expenditures: General government 59,769 61,776 67,059 65,781 58,116 Public service 46,393 47,816 51,411 54,860 49,003 Public safety 379,067 360,893 352,147 339,129 319,831 Development 15,600 16,497 20,486 29,800 27,165 Health - 267 163 - - Recreation and parks - 501 420 - - Capital outlay 2,516 1,273 2,958 3,181 7,552 Total expenditures 503,345 489,023 494,644 492,751 461,667 Excess of revenues over expenditures 77,734 8,121 (3,532) 20,252 49,343
Other financing sources (uses): Transfers in (out): Cash returned from over funded employee benefits fund - 14,157 - - - Tipping fees 11,318 13,450 13,659 15,701 11,343 Helicopters 1,731 - 651 - 1,270 Other 6 73 112 - - Health (22,352) (16,204) (17,420) (19,499) (20,560) Recreation and parks (17,004) (25,122) (27,167) (29,760) (29,586) Other (320) (203) (2,810) (3,242) (4,109) Total other financing sources (uses) (26,621) (13,849) (32,975) (36,800) (41,642)
Excess (deficit) of revenues and other financing sources over expenditures and other financing uses 51,113 (5,728) (36,507) (16,548) 7,701
Fund balance at beginning of year 53,130 58,858 95,365 111,913 104,212 Fund balance at end of year $ 104,243 53,130 58,858 95,365 111,913
15 Revenue narrative:
Brief descriptions of the City's major revenue components follow.
Income taxes:
The City's income tax continues to be its primary source of revenue. The tax applies to all wages, salaries, commissions, and other compensation paid by employers and/or the net proceeds from the operation of a business, profession, or other enterprise activity. The initial tax rate of .5%, collected in 1948, was increased to 1% in 1956, 1.5% in 1971, and to the current 2% in 1983. Income tax rates of cities and villages within the State of Ohio are limited to a maximum of 1%, unless specifically approved by a majority of the resident voters of the respective city or village. There are 567 cities and villages within the State of Ohio that now levy a local income tax. Rates range from .30% to 3.00%.
Local school districts in the State of Ohio are also permitted to levy an income tax, but only with the approval of a majority of voters within the district. Ohio has 611 school districts; 145 have an income tax. Rates range from 0.5% to 2.0%.
Approximately 84.6% of the City's income tax collected in 2004 was via employers withholding the tax from employees' earnings and remitting the tax to the City on a statutorily prescribed schedule. Approximately 10.4% of collections originated from business accounts and 5.0% from independently employed individual taxpayers. Depending on the amount withheld, employers must remit to the City on a semi-monthly, monthly, or quarterly frequency, with the largest amounts being remitted semi-monthly.
One quarter of the revenue from this tax is accounted for in a Debt Service Fund and is primarily used for servicing debt pertaining to non- enterprise type capital improvements. Tipping fees for disposal of garbage collected by the City are also paid from this fund on the City's budget basis of accounting. On the modified accrual basis of accounting, such tipping fee amounts are transferred to the General Fund and expended as public service expenditures. Three-quarters of income tax revenues are used for General Fund purposes. Income tax revenues on the budget basis represent 2004 collections of $465.7 million less refunds of $11.7 million for a net amount of $454.0 million. Beginning in 2002 the City began designating certain collections to defray collection agency fees on delinquent accounts. Income tax revenues on the modified accrual basis of accounting, net of refunds, were $458.819 million and are reported in the following funds: (in thousands) Fund 2004 2003 2002 2001 2000
General $ 343,982 329,077 326,612 326,259 315,610 General Bond Retirement 89,192 97,325 90,837 94,439 87,335 Special Income Tax 25,470 12,368 18,060 14,288 17,867 Other governmental-special revenue 175 223 58 - - Total $ 458,819 438,993 435,567 434,986 420,812
% increase (decrease) over prior year 4.52 .79 .13 3.37 2.40 %
A ten-year history of the income tax revenue and cash collections, net of refunds, appears in the Statistical Section of this report. The City acts as collection agent for 7 other cities and villages in the central Ohio area. Fees collected by the City for these services totaled $348,485 in 2004, and are accounted for in the General Fund as charges for services.
Property taxes:
Property taxes in Ohio are levied and collected by its 88 counties. The City lies partially within three of these counties: Franklin, Fairfield, and Delaware. After collection, the counties distribute portions of these taxes to the political subdivisions (school districts, cities, villages, townships, etc.) located within their geographic borders. Property taxes for the City represent a tax rate of approximately 3.14 mills ($3.14 per $1,000 of taxable valuation) applied to the assessed value of property located in the City. Assessed values represent approximately 35% of appraised values. This rate, 3.14 mills, has remained unchanged since 1956.
16 Increases in this rate can only occur with approval of the City's voters. Revenues from property taxes are used for General Fund operations, including a partial provision, 0.60 mills, for current police and fire pension costs. Revenues produced by this millage for the General Fund were:
(in thousands) 2004 2003 2002 2001 2000 General Fund $ 45,891 45,660 41,520 40,881 39,049
% increase (decrease) from prior year .51 9.97 1.56 4.69 13.50 %
Assessed values of taxable property at December 31, 2004 within the City, in the counties in which the City is located, were as follows:
(in thousands) Franklin $ 14,380,777 Fairfield 134,760 Delaware 203,732 Total $ 14,719,269
Total assessed values in the City over the past ten years are shown below. Values of Franklin, Fairfield, and Delaware counties are included in years where applicable.
For Tax Assessed % Increase Fiscal Collection In Value From Year Fiscal Year (in thousands) Prior Year
1995 1996 $ 9,483,390 2.34 % 1996 1997 10,130,785 6.83 1997 1998 10,483,853 3.49 1998 1999 10,972,327 4.66 1999 2000 12,397,530 12.99
2000 2001 12,939,074 4.37 2001 2002 13,107,854 1.30 2002 2003 14,551,080 11.01 2003 2004 14,488,874 (.43) 2004 2005 14,719,269 1.59
Property assessed values steadily increased over the period 1995 to 2002, with larger increases evident every three years. These three-year increases result from comprehensive reappraisals of property that take place every six years, and less formal triennial updates that occur the third year in between the six year reappraisals. Six-year reappraisals took place in 1999, with the resulting increases in property tax collections occurring in 2000. In 1996 and 2002 triennial updates occurred. Property taxes levied in 2004 but not collectible until 2005 are accounted for in the General Fund as accounts receivable and deferred revenue at an estimated amount of $45.8 million.
The decline in total assessed values for collections in 2004; shown in detail in Table 7 in the Statistical Section of this report; is due to legislated declining assessed values, as a percent of appraised values, of personal property. Personal property is defined as equipment and inventory used in business. Real property, land and buildings, assessed value for tax collection in 2004 continued to increase; by 2.39%. Personal property assessed values declined again for collections in 2005 by approximately $82 million or 5.4%, while real property, land, and buildings assessed values increased by approximately $236 million.
Additional data on property values and taxes appear in the Statistical Section of this report.
17 Investment earnings:
The City's investment policies are discussed in Note C. This source of revenue is not conducive to year-to-year comparisons. Investment earnings are only deposited to the General Fund after all statutorily directed earnings are deposited to the appropriate funds: enterprise funds, grant funds, etc. Earnings for the past five years have been:
(in thousands) Funds 2004 2003 2002 2001 2000
General $ 6,754 7,783 13,260 27,060 32,745 General Bond Retirement 65 57 81 125 244 Special Income Tax - - - 108 - Other governmental 469 356 854 2,086 3,253 Total governmental funds 7,288 8,196 14,195 29,379 36,242 Enterprise 2,340 2,975 6,393 8,024 7,544 Total $ 9,628 11,171 20,588 37,403 43,786
Licenses and permits:
Licenses and permits are issued by the City to regulate activities related to building, health, and other business enterprises. Over the past five years, revenues in the General Fund resulting from licenses and permits amounted to:
(in thousands) 2004 2003 2002 2001 2000
Amount $ 2,090 957 1,150 11,538 10,700 % increase (decrease) from prior year 118.39 (16.78) (90.03) 7.83 (10.62) %
Effective January 1, 2004 all license fees administered by the City’s department of Public Safety were increased to more fully cover related costs. These fee increases resulted in a $1.1 million increase in revenue in the licenses and permits line item.
Beginning in 2002, revenues and expenditures of the Building Services division of the Department of Development have been accounted for in a nonmajor governmental (special revenue) fund. Prior to 2002 this activity was accounted for in the General Fund. The activity is now intended to be self sustaining with no other support from the General Fund.
Shared revenues:
Shared revenues in the General Fund include the taxes listed below which are levied and collected by the state or counties and partially redistributed to the City and other political subdivisions. Provided below is a five-year history of the City's share of these revenues as reported in the governmental fund financial statement on the modified accrual basis of accounting.
(in thousands) 2004 2003 2002 2001 2000 State income, sales, corporate franchise, and public utility taxes: Local government fund $ 42,979 43,075 43,677 46,881 44,867 Local government revenue assistance fund 3,830 3,830 3,879 4,080 3,984 Estate tax 8,031 9,272 8,105 9,972 12,125 State liquor fees 1,052 960 982 964 968 Cigarette tax and other 32 33 36 35 38 Total $ 55,924 57,170 56,679 61,932 61,982
% increase (decrease) from prior year (2.18) .87 (8.48) (.08) 9.39 %
The decline in revenues from the 2000 levels of the Local government fund and the Local government revenue assistance fund is directly attributable to effects of the nationwide and Ohio-wide economic recession, thereby reducing the level of support from the state of Ohio to its cities.
18
Charges for services:
The City performs certain services for its citizens and other municipalities for which it charges various amounts. These services include impounding, storing and selling abandoned autos; fire and police protection provided to certain suburbs; parking meter fees; and various other services. Additionally the City's General Fund allocates certain citywide costs initially borne by the General Fund to certain other funds. These costs (pro rata charges) are allocated by charging certain other funds a statutorily approved rate of 4 1/2%, as determined by the City’s most recent cost allocation plan, of their gross revenue.
These revenues in the General Fund over the past five years have produced: (in thousands) 2004 2003 2002 2001 2000
Parking meters and fees $ 3,121 3,125 3,394 3,413 3,199 City Attorney charges 1,089 1,067 739 707 683 City Auditor charges 348 421 580 573 593 Police services 4,722 4,963 4,039 3,361 3,179 Fire services 9,613 6,612 1,913 1,840 1,760 Pro rata charges 17,250 16,433 16,352 15,402 14,912 All other 1,489 1,340 777 1,462 2,773 Total $ 37,632 33,961 27,794 26,758 27,099
% increase (decrease) from prior year 10.81 22.19 3.87 (1.26) 10.97 % Police services in 2004 include $651 thousand received from the local public school district for special police services in schools; this revenue was first received in 2003 in the amount of $1.035 million. Fire services representing charges for emergency medical transportation services were $7.548 million ($7.520 million collected) and $4.619 million ($3.573 million collected) in 2004 and 2003, respectively; 2003 was the first year for such revenue.
Fines and forfeits:
These revenues consist of fines and forfeits imposed by the Franklin County Municipal Court, and parking tickets issued by the City's parking violation's bureau. Increased "prices" for parking tickets and various fines in 2002 resulted in the significant increase in this revenue source during 2002 and 2003. (in thousands) 2004 2003 2002 2001 2000
Fines and forfeits $ 12,091 11,470 10,656 8,804 8,382 Parking ticket revenue 5,660 5,621 4,866 4,120 4,209 Total $ 17,751 17,091 15,522 12,924 12,591
% increase (decrease) from prior year 3.86 10.11 20.10 2.64 0.98 %
Miscellaneous: Miscellaneous revenues in the General Fund on the modified accrual basis of accounting consist of the following:
(in thousands) 2004 2003 2002 2001 2000
SWACO rent $ 61,758 - - - - Electricity kilowatt tax 3,265 - - - - Hotel/motel taxes 2,875 2,804 2,707 2,735 3,764 Refunds and reimbursements 3,008 1,206 5,755 2,266 7,146 Other 149 1,435 113 650 324 Total $ 71,055 5,445 8,575 5,651 11,234
On May 4, 2004, the City received $55.1 million from the Solid Waste Authority of Central Ohio (SWACO). These monies resulted from a bond issue by SWACO and have been paid to the City in partial satisfaction of lease rental payments due the City as fully described in
19 Note H. In prior years, revenue recognition on the receivable from SWACO was deferred due to the uncertainty of collection. SWACO is a separate and distinct political subdivision of the State of Ohio. Its primary task is to dispose of garbage. As fully described in Note H, SWACO leased, in 1993, a trash burning power plant from the City. After the plant’s closure in 1994 SWACO became in arrears in lease payments to the City. These monies have been deposited in the Economic Stabilization component (rainy day fund) of the City’s General fund and are included in miscellaneous revenue in 2004.
Refunds and reimbursements in 2004, 2002, and 2000 include refunds from the Ohio Bureau of Workers’ Compensation. Proportionate shares of the refund were returned to the respective funds from which the premium had been paid.
Expressed as percentages of total revenues, the major General Fund revenue components over the past five years are:
2004 2003 2002 2001 2000
Income taxes 59.2 66.2 66.5 63.6 61.8 % Property taxes 7.9 9.2 8.5 8.0 7.6 Investment earnings 1.1 1.6 2.7 5.3 6.4 Licenses and permits .4 .2 .2 2.2 2.1 Shared revenues 9.6 11.5 11.5 12.1 12.1 Charges for services 6.5 6.8 5.7 5.2 5.3 Fines and forfeits 3.1 3.4 3.2 2.5 2.5 Miscellaneous 12.2 1.1 1.7 1.1 2.2 Total revenue 100.0 100.0 100.0 100.0 100.0 %
Transfers in narrative:
Transfers in for 2004 include $11.318 million transferred from the Special Income Tax Debt Service Fund representing tipping fees expended therefrom on the City’s budget basis of accounting. Tipping fee costs appear as public service expenditures. Transfers in also include $1.731 million transferred from the Special Income Tax Debt Service Fund for the purchase of helicopters, which have been included as capital outlay expenses in the General Fund for GAAP reporting.
Expenditure narrative: The practice of transferring monies from the General Fund to the Health Department Fund and the Recreation and Parks Fund, both Special Revenue Funds, is a method used annually by the City to provide resources to these funds. It is appropriate, therefore, to consider transfers out in the following analysis of the General Fund. After combining transfers out with expenditures, the major General Fund components over the past five years are: (in thousands) 2004 2003 2002 2001 2000
General government $ 59,769 61,776 67,059 65,781 58,116 Public service 46,393 47,816 51,411 54,860 49,003 Public safety 379,067 360,893 352,147 339,129 319,831 Development 15,600 16,497 20,486 29,800 27,165 Capital outlay and other 2,516 2,041 3,541 3,181 7,552 Total expenditures 503,345 489,023 494,644 492,751 461,667
Health 17,004 16,204 17,420 19,499 20,560 Recreation 22,352 25,122 27,167 29,760 29,586 Other (transfers out) 320 203 2,810 3,242 4,028 Total transfers out 39,676 41,529 47,397 52,501 54,174 Total $ 543,021 530,552 542,041 545,252 515,841
% increase (decrease) from prior year 2.35 (2.12) (.59) 5.70 8.85 %
Transfers out narrative: The City's General Fund provides financial support to its Health department ($17.004 million) and to its Recreation and Parks operations ($22.352 million). Financial activity of these services is primarily accounted for in Other Governmental Funds. Total expenditures reported in the fund financial statements for these services were $36.640 million for the Health Department and $77. 450 million for the Recreation and Parks Department. 20 Expressed as percentages, the General Fund expenditures and transfers out over the past five years are:
2004 2003 2002 2001 2000
General government 11.0 11.6 12.4 12.0 11.3 % Public service 8.5 9.0 9.5 10.0 9.5 Public safety 69.8 68.0 65.0 62.2 62.0 Development 3.1 3.1 3.8 5.5 5.3 Capital outlay and other .4 .5 .6 .6 1.4 Total expenditures 92.8 92.2 91.3 90.3 89.5
Health (transfers out) 3.1 3.1 3.2 3.6 4.0 Recreation and parks (transfers out) 4.1 4.7 5.0 5.5 5.7 Other (transfers out) - - .5 0.6 0.8 Total transfers out 7.2 7.8 8.7 9.7 10.5 Total 100.0 100.0 100.0 100.0 100.0 %
Public safety, primarily police and fire services, continues to be the dominant expenditure function of the General Fund.
Expenditures by function in the General Fund represent the following City divisions:
General government: Public safety:
• Mayor • Safety Director • City Council • Support Services (Communications) • City Treasurer • Fire • Parking Violations Bureau • Police • City Attorney • City Auditor Development: • Income Tax • Municipal Court Judges • Development Administration • Municipal Court Clerk • Economic Development • Civil Service Commission • Neighborhood Services • Community Relations Commission • Equal Business Opportunity Director Capital Outlay: • Office of Education • Finance Director • Expenditures for capital assets with estimated • Purchasing useful lives of five years or more. • Human Resources • Technology Director Health • Information Services • Telecommunications • General Fund monies of $17.004 million were transferred to the Health Department in 2004. Public service: Recreation and parks: • Service Director • Facilities Management • General Fund monies of $22.352 million were • Fleet Management transferred to the Recreation and Parks Department • Refuse Collection in 2004.
21 General Fund balances:
The City is required to maintain accounting records on a budget basis, as explained earlier in this letter. The Budgetary Comparison Schedule – General Fund presented as Required Supplementary Information immediately following the notes to the financial statements show the actual results of the budgeted general fund for 2004. A contrast in the two accounting methods and their impact on General Fund balances is shown below. A reconciliation between the General fund changes in fund balance on the budget basis versus the modified accrual basis is also presented on the Budgetary Comparison Schedule for 2004.
General Fund balances at December 31, 2004 2003 2002 2001 2000 (in thousands) Budget Basis: Designated for future years expenditures $ 66,370 30,424 39,308 37,423 35,027 Undesignated 21,678 8,958 11,060 29,793 30,811 Total fund balance $ 88,048 39,382 50,368 67,216 65,838
Modified Accrual - GAAP Basis: Reserved for encumbrances $ 10,518 14,539 11,633 17,347 27,317 Unreserved Designated for future years’ expenditures 66,753 30,471 39,573 37,884 35,521 Undesignated 26,972 8,120 7,652 40,134 49,075 Total unreserved 93,725 38,591 47,225 78,018 84,596 Total fund balance $ 104,243 53,130 58,858 95,365 111,913
Grants and subsidies:
Grants and subsidies received by the City are accounted for in the Special Revenue Funds and Capital Projects Funds. The five-year history of the City's grants and subsidies reported on the modified accrual basis of accounting follow. (in thousands) Funds 2004 2003 2002 2001 2000
Special Revenue $ 96,655 79,588 76,130 69,923 52,134 Capital Projects 14,254 7,404 5,262 7,157 4,233 Total $ 110,909 86,992 81,392 77,080 56,367
% increase (decrease) from prior year 27.5 6.9 5.6 36.7 5.19 %
Certain significant grants received by the City in 2004 are shown below. (in thousands) • Medical Assistance Program (PASSPORT) via the Ohio Department of Aging – CFDA 93.778 $ 28,905
• Community Development Block Grant - non Loan Program via U.S. Department of Housing and Urban Development - CFDA 14.218 10,600
• Freeway Management and Highway Planning & Construction via Ohio Department of Transportation – CFDA 20.205 9,787
• Empowerment Zones Program via U.S. Department of Housing and Urban Development – CFDA 14.244 5,570
• State of Ohio ADA Curb Ramps 3,781
• Women’s, Infants and Children Program via U.S. Department of Agriculture - CFDA 10.557 3,599
Capital assets: Capital assets are defined by the City as assets with an individual cost of more than $5,000 and an estimated useful life in excess of five years. Capital assets, which include property, plant and equipment, and infrastructure (e.g. roads, curbs, and gutters, streets and sidewalks, and drainage systems) are recorded at historical cost or estimated historical cost (for certain assets acquired prior to 1960). 22 Pursuant to the implementation of GASB Statement No. 34, the historical cost of infrastructure assets (retroactive to January 1, 1979) is included as part of the governmental capital assets reported in the government-wide statements. Contributed capital assets are recorded at their market value at the time of contribution. Capital assets are further described in Note F.
Enterprise funds:
The City operates four enterprise activities: a Water system, a Sanitary Sewer system, a Storm Sewer system, and an Electricity distribution system, which are accounted for in separate enterprise funds. Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises—where the City intends that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The City accounts for its enterprise funds on the full accrual basis of accounting.
Following are the annual charges and rate increases (decreases) for the average Columbus resident/user of water and sewers over the last ten years. An average Columbus resident/user is defined as a customer using 12,000 cubic feet of water annually. Water and sanitary sewer charges are designed to provide resources for both capital and operating costs. Storm sewer charges are designed to provide resources for storm sewer operating costs (maintenance) and certain, but not all, capital costs.
Water Sanitary Sewers Storm Sewers Total Moving ten year Annual % increase Annual % increase Annual % increase Annual % % Year charge (decrease) charge (decrease) charge (decrease) charge increase increase
1996 $ 168.12 3.7 $ 224.35 3.0 $ 19.68 (32.8) $ 412.15 0.7 83.6 1997 173.16 3.0 231.10 3.0 19.68 0.0 423.94 2.9 84.2 1998 179.64 3.7 228.70 (1.0) 19.68 0.0 428.02 1.0 85.9 1999 183.36 2.1 228.60 0.0 19.68 0.0 431.64 0.8 79.4 2000 183.36 0.0 228.60 0.0 26.52 34.8 438.48 1.6 68.9
2001 183.36 0.0 228.60 0.0 29.88 12.7 441.84 0.8 46.3 2002 183.36 0.0 228.60 0.0 32.70 9.5 444.66 0.6 30.8 2003 192.60 5.0 240.12 5.0 34.35 5.0 467.07 5.0 26.1 2004 206.52 7.2 262.92 9.5 36.14 5.2 505.58 8.2 26.7 2005 221.52 7.3 288.12 9.6 38.43 6.4 548.07 8.4 33.9
The City's enterprises are not subject to rate review or determination by the Public Utilities Commission of Ohio or any similar regulatory body. The City's Council has the necessary authority to establish appropriate user rates when needed. The rates are reviewed and established by the Council annually. The frequency and amounts of rate setting authority lies solely with the City's Council.
23 Water:
The City’s Water enterprise serves the residents of the City and the majority of suburban communities in the Columbus vicinity. The population of the service area is estimated in excess of one million persons. The Water enterprise serves 264,341 customer accounts, owns and maintains 2,521 miles of water mains primarily within the City and maintains an additional 827 miles of mains beyond the City’s borders.
The City obtains its raw water supply from rivers, reservoirs, and wells. The enterprise conducted a regional water resource project titled Water Beyond 2000 which is used as a guide to develop additional water supply, treatment facilities, and distribution components as dictated by increasing demand. Future supply requirements will be addressed through a combination of demand management efforts and construction of upground reservoirs along the Scioto River north of the City. All necessary land for the upground reservoirs has been purchased.
The Water enterprise operates three treatment plants. A summary of the historical pumpage over the last five years follows:
(in millions of gallons) 2004 2003 2002 2001 2000
Minimum day 116 110 111 109 119 Maximum day 191 189 216 203 184 Average day 142 141 146 143 139
Total year’s pumpage 51,829 51,393 53,298 52,038 51,037
The enterprise operates one of the most sophisticated water laboratories in the nation. The lab has maintained its EPA certification continually since the certification process began in 1976 pursuant to the Safe Drinking Water Act of 1974. On a semiannual basis, the lab must conduct various water study sample tests. The certification covers both equipment and personnel and represents a measure of quality performance. The staff is fully supported with state of the art equipment. Their primary responsibility is to assure that the Water enterprise is, and will remain, in compliance with all federal, state, and local requirements. A five-year comparison of certain Water enterprise data is shown below. Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
(in thousands, except for number of employees) 2004 2003 2002 2001 2000
Assets $ 473,784 450,598 471,463 447,038 433,298 Net assets 182,168 169,843 165,087 156,901 147,990 Operating revenues 106,494 94,167 97,650 96,488 93,803 Operating expenses (83,392) (79,673) (80,109) (78,679) (72,781) Operating income 23,102 14,494 17,541 17,809 21,022 Nonoperating Investment income 1,038 1,075 2,323 4,018 2,106 Interest expense (12,343) (12,113) (11,742) (12,451) (14,363) Other, net 528 74 64 (465) 69 Transfers in - 1,226 - - - Change in net assets/net income 12,325 4,756 8,186 8,911 8,834
Number of employees 533 547 539 544 547
All bonds of the Water enterprise are paid from Water enterprise revenues.
24 Sanitary Sewers:
The City's Sanitary Sewer enterprise also serves the metropolitan area with approximately 260,470 customer accounts, both residential and commercial. Included in the total sewer system are 2,782 miles of sanitary sewers, 2,537 miles of storm sewers, and 167 miles of combined sanitary/storm sewers. The costs and related financial activities of sanitary and combined sewers are accounted for in the Sanitary Sewer Enterprise Fund.
The Sanitary Sewer enterprise operates two treatment plants. During 2004 treatment data was as follows.
(millions of gallons per day) Southerly Jackson Plant Pike Plant Total
Minimum day 58.6 30.3 88.9 Maximum day 220.5 108.0 328.5 Average day 104.2 82.9 187.1
Maximum capacity 200.0 110.0 310.0
When the Jackson Pike plant reaches capacity the excess automatically flows through connectors to the Southerly plant. The Southerly plant has a design capacity that allows gallons treated to exceed, by approximately 20%, the maximum longer term sustainable maximum capacity for shorter periods of time. In 2004 gallons treated on eight days; 1/4, 1/5, 1/6, 2/6, 3/30, 3/31, 4/14, and 12/31, exceeded the longer term sustainable capacity, with 1/4 being the maximum treatment day of 220.5 million gallons.
A five-year comparison of certain Sanitary Sewer enterprise data is shown below. Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
(in thousands, except for number of employees) 2004 2003 2002 2001 2000
Assets $ 1,163,991 1,087,192 1,056,581 999,402 931,126 Net assets 487,009 467,670 462,967 444,199 431,509 Operating revenues 132,729 116,827 121,904 115,652 116,570 Operating expenses (96,662) (91,932) (87,874) (85,328) (79,224) Operating income 36,067 24,895 34,030 30,324 37,346 Nonoperating Investment income 681 1,222 3,409 3,585 4,488 Interest expense (17,524) (18,189) (19,598) (20,757) (23,145) Other, net 108 (4,416) 482 (462) - Transfers in 7 1,191 445 - - Change in net assets 19,339 4,703 18,768 12,690 18,689 Number of employees (years prior to 2002 (include storm sewer employees) 494 505 497 544 571
All bonds and notes of the Sanitary Sewer enterprise are paid from Sanitary Sewer enterprise revenues.
Storm sewers:
Prior to 2002 the City’s Storm sewer financial activity was accounted for in a governmental type special revenue fund. Beginning with 2002, Storm sewer assets, liabilities, revenues, and expenses have been accounted for in a business type activity enterprise fund. The City intends that all costs of the Storm sewer enterprise be supported by user charges except for debt service, principal and interest, on bonds authorized by the voters in 1991 and prior. This net debt service amount in 2004 was $ 2.407 million and is included in the enterprise financial statements as Transfers in. Final maturity on these bonds, all general obligation type bonds, is 2018.
25 The City’s Storm sewer enterprise owns and maintains 2,537 miles of such sewers and has 191,254 customer accounts, all within the City’s borders. Certain Storm sewer enterprise data is shown below.
(in thousands, except for number of employees) 2004 2003 2002 Assets $ 144,737 107,365 106,095 Net assets 44,582 39,290 33,341 Operating revenues 24,537 20,943 21,218 Operating expenses (18,261) (15,234) (14,903) Operating income 6,276 5,709 6,315 Nonoperating Investment income 473 635 330 Interest expense (3,866) (3,409) (3,395) Other, net 2 - - Transfers in 2,407 3,014 30,091 Change in net assets 5,292 5,949 33,341
Number of employees 34 34 34 Electricity:
The City owns and operates an Electricity distribution system and accounts for it in the Electricity Enterprise Fund. The system had its origin in the 1890's and generated electricity from burning coal. The initial sole purpose for its existence was to light the streets of the City. In response to environmental concerns, the City ceased burning coal in 1977 and ceased generating electricity. The City continued distributing electric power by purchasing all of its needed power from privately owned and other publicly owned utilities.
After a lengthy construction period, the City's solid waste resource recovery facility, a refuse derived fuel power plant, with capital costs of approximately $200 million, began operations in the fourth quarter 1983. On April 1, 1993, the City leased the plant and related transfer stations (the Plant) to the Solid Waste Authority of Central Ohio (SWACO), a separate and distinct political sub-division of the State of Ohio. The annual lease payments to the City were to be in the amount of the related debt service requirements on bonds that were issued for the construction of the Plant. This lease resulted in the removal of certain real and personal property assets from the Electricity Enterprise Fund with original costs totaling $205.5 million of which $3.4 million was transferred to the then General Fixed Asset Account Group. The lease was accounted for in the Electricity Enterprise Fund as a capital lease in accordance with Statement No. 13 of the Financial Accounting Standards Board, Accounting for Leases. Due to a series of federal court decisions and U.S. EPA decisions the Plant ceased operations at the end of 1994. The City then began, in 1995, to buy all of its power from sources other than SWACO. The City's Electricity distribution system has 13,562 residential and commercial customers.
As indicated above the Plant ceased operations in December 1994. Demolition of the Plant began in February 2005. SWACO continues, however, to operate a landfill. The City is SWACO's largest customer at the landfill for landfill tipping fees.
At the end of 1994, upon the closing of the Plant, its associated direct financing lease was no longer deemed to be an Electricity Enterprise Fund asset nor were the general obligation bonds related thereto considered an Electricity Enterprise Fund liability. The City, therefore, in December 1994 transferred the direct financing lease (the asset) and the general obligation bonds related thereto (the liability) to the Debt Service Fund and the then General Long-Term Obligations Account Group, respectively.
In 1984 the City issued $70.0 million of Variable Rate Demand Electric System Revenue Bonds. Proceeds of the bonds were used toward the completion of the Plant. Bondholders, however, had first lien on all revenues of the Electric Enterprise. Even after the closure of the Plant in 1994, these bonds, because of the lien on all revenues of the enterprise, remained as liabilities of the enterprise. In 2001 these revenue bonds were converted, refunded, by the issuance of Governmental Type general obligation fixed rate unvoted bonds of the City. Since no claim on enterprise revenue remains and the related asset was long ago, 1994, transferred out of the enterprise, the remaining bonds of $29.450 million outstanding at December 31, 2001 were transferred out of the enterprise in 2002 as a nonreciprocal interfund transfer.
As explained further in Note H the City and SWACO again amended the lease in 1998 and in 2004. The City agreed to continue to deliver its garbage to the SWACO landfill and to reduce the liability of SWACO to the City to 65%, as opposed to 100%, of the City’s remaining Plant related debt service at January 1, 1995. SWACO agreed to ensure landfill capacity until the year 2025 and to institute a new garbage fee, which would be paid to the City. On May 4, 2004, the City received $55.1 million from SWACO for partial satisfaction of lease rental payments described herein. This $55.1 million resulted from proceeds of revenue bonds sold by SWACO and paid to the City; primarily representing delinquent lease rental payments due to the City in previous years and accounted for by the City as deferred revenue in the Debt Service Funds. Also in 2004 the City received an additional $4.306 million from SWACO’s other resources. In 2004, pursuant to statute, the City began accounting for the SWACO lease in its General Fund. The City received $377,500 from SWACO in
26 January, February, 2005 and is recognized as revenue in 2004 (60 day rule). All lease receivable amounts not received within 60 days after year end have been accounted for as deferred revenue in the General Fund.
A detailed computation of the City’s lease receivable at December 31, 2004 is shown in Note H.
Rates charged to customers are determined solely by the City’s Council after recommendation by the Electricity Enterprise management. Council’s determination is final and is not subject to review or approval by any other regulatory body. Rates are, however, subject to market driven competition provided by the private electric utility in the area.
A five-year comparison of certain Electricity enterprise data is shown below:
(in thousands, except for number of employees) 2004 2003 2002 2001 2000
Assets $ 102,047 85,106 84,662 86,818 99,943 Net assets 53,468 49,093 45,935 14,020 13,027 Operating revenues 60,778 57,608 56,168 52,560 50,590 Operating expenses (54,756) (53,616) (53,176) (50,758) (44,122) Operating income 6,022 3,992 2,992 1,802 6,468 Nonoperating Investment income 148 43 331 421 950 Interest expense (1,380) (1,260) (1,015) (3,138) (3,840) Other, net (413) 2 7 (92) - Transfers in 100 381 29,600 2,000 5,511 Transfers out (102) - - - - Change in net assets 4,375 3,158 31,915 993 9,089
Number of employees 124 126 126 115 123
Debt administration:
Summary of outstanding notes and bonds payable:
The City's outstanding notes and bonds represent indebtedness for capital needs only, except for the Police and Firemen's Disability and Pension Fund Employers Accrued Liability Refunding Bond (OP&F Bond), ($19,680,000) an unvoted general obligation bond accounted for in governmental type debt, and the FNMA Single Family Mortgage Revenue Note ($27,191). Notes payable and long- term obligations are explained further in Note G. Following are some pertinent data, both current and historical, regarding the City's outstanding notes and bonds.
Ratings:
In 1995 both Standard & Poor's Corporation and Moody's Investors Service, Inc. raised their credit ratings of the City's general obligation bonds to AAA and Aaa, respectively. The City's bond ratings are further described in MD&A in the financial section and on Table 31 in the Statistical Section of this report. More information on the City’s outstanding bonds and notes appears in Note G.
27 Sources of Repayment:
Long-term Notes and Bonds and loans payable of $1.915 billion less the obligation under capitalized leases (Note J) of $870 thousand, and $2.0 million, Sanitary Sewer enterprise notes of $1.366 million, and Electricity enterprise notes of $1.964 million; a total of $1.909 billion will be repaid from the following sources:
Source/Description Amount % (in thousands) Debt Service Fund: General obligation: Voted-unlimited fixed interest rate $ 480,686 25.2 % Voted-unlimited variable interest rate 21,095 1.1 Unvoted-limited 282,293 14.8 Unvoted-limited/assessment 75 0.0 Revenue: Fixed Interest Rate 56,985 3.0 Variable Interest Rate 4,600 0.2 Note-long-term fixed interest rate 4,600 0.2 Total Debt Service Fund 850,334 44.5 Housing mortgage revenue payments: Single Family Mortgage Revenue Note (FNMA) 27 0.0 Total housing mortgage revenue payments 27 0.0 Internal Service Funds: Information services: General obligation: Unvoted-limited 5,160 0.3 Fleet management: General obligation: Unvoted-limited 450 0.0 Total Internal Service Funds 5,610 0.3 Enterprise Funds: Water revenues: General obligation: Voted-unlimited fixed interest rate 146,916 7.7 Voted-unlimited variable interest rate 38,275 2.0 Unvoted-limited fixed interest rate 49,263 2.6 Revenue: Fixed interest rate 39,160 2.0 Total Water 273,614 14.3 Sanitary sewer revenues: General obligation: Voted-unlimited fixed interest rate 185,225 9.7 Unvoted-limited fixed interest rate 19,250 1.0 Unvoted-limited/assessment fixed interest rate 379 0.0 Revenue: Fixed interest rate 49,400 2.6 Variable interest rate 51,600 2.7 OWDA/EPA loans 341,932 17.9 Total Sanitary Sewer 647,786 33.9 Storm sewer revenues: General obligation: Voted-unlimited fixed interest rate 50,539 2.7 Voted-unlimited variable interest rate 4,265 0.2 Unvoted-limited fixed interest rate 39,843 2.1 Total Storm Sewer 94,647 5.0 Electricity revenues: General obligation: Voted-unlimited fixed interest rate 27,239 1.5 Voted-unlimited variable interest rate 4,550 0.2 Unvoted-limited fixed interest rate 4,016 0.2 Unvoted-limited/assessment fixed interest rate 1,331 0.1 Total Electricity 37,136 2.0 Total Enterprise Funds 1,053,183 55.2 Total $ 1,909,154 100.0 %
28 The Columbus Regional Airport Authority (CRAA) formerly the Columbus Municipal Airport Authority; beginning January 1, 2003, is no longer a component unit of the City (See Note A) and is now considered a joint venture (See Note Q). The CRAA does continue, however, to pay debt service on certain general obligation bonds of the City issued in earlier years when airport operations were owned by and operated as a division of the City. $8.62 million of such bonds remained outstanding at December 31, 2004 and are included in the above tables as General Obligation – Voted ($940 thousand) and General Obligation – Unvoted ($7.68 million).
Voted-unlimited general obligation debt represents debt authorized by a vote of the City's electors. The voters grant the City unlimited authority to levy property taxes to the extent necessary to pay this debt, both principal and interest. However, the City actually repays the debt, if Governmental Type debt, from its Debt Service Funds and, if accounted for in an enterprise fund from the respective enterprise fund. Resources in the Debt Service Funds are primarily income tax with lesser amounts of certain recreation fees and special assessments.
Voted debt, therefore, carries a "double barreled" protection for its bond holders and represents approximately 70.5% of the City's general obligation debt and approximately 50.2% of its total bonds and long-term notes. It has long been the City's policy not to rely on, or impose, property tax levies to service its debt. The City intends to continue this policy.
Unvoted-limited general obligation debt represents debt authorized by the City's Council without a direct vote of the electors. As explained later in the Debt Limitations section of this letter, the City is limited in its property tax levying authority regarding unvoted debt. This debt is also repaid from the City's debt service funds and from enterprise fund revenues in the same manner and from the same resources as the Voted debt described in the previous paragraph. All of the City's special assessment supported bonds and notes are Unvoted-limited general obligation debt.
The City may, at its option, convert the variable interest rate bonds to a fixed interest rate. Furthermore, these bonds may be called at the discretion of the City under specified procedures on any interest payment date. Note G describes various fundamentals of the variable rate bonds and the City's obligations thereunder. The City has complied with all requirements of the bond agreements.
The revenue bonds accounted for as Governmental Type represent the City’s Tax Increment Financing (TIF) bonds. The City’s liability for these bonds is limited to resources, money, collected via the TIF. Such monies are accounted for in Debt Service Funds.
In conjunction with the issuance of the Water and Sewer revenue bonds, the City entered into various trust agreements with commercial banks. These trust agreements require that the City establish various funds for the cost of construction and replacement of property and equipment and repayment of debt. Restricted assets, consisting of cash, investments, and accrued interest receivable, relating to the revenue bonds and certain general obligation bonds were held by both the City and bond trustees. These assets and related liabilities are identified as restricted in the City's financial statements contained in this report and further identified in Note G.
Bond and Note History:
Outstanding bonds and notes consistently represent the largest of the City's liabilities. It is meaningful therefore to show a longer history of this debt. At December 31 of each of the last ten years outstanding bonds and notes, exclusive of the capitalized leases of $2.870 million, are shown in the following table; adjusted in years prior to 2004 to properly eliminate revenue bonds of the Columbus Municipal Airport Authority, a component unit of the City prior to 2004. Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements. (in thousands) Bonds and Short-term Year long-term notes notes Total 1995 $ 1,403,841 327 1,404,168 1996 1,435,790 313 1,436,103 1997 1,513,791 1,126 1,514,917 1998 1,603,983 81 1,604,064 1999 1,663,927 176 1,664,103
2000 1,697,710 1,541 1,699,251 2001 1,733,404 1,830 1,735,234 2002 1,776,312 - 1,776,312 2003 1,677,098 1,693 1,678,791 2004 1,909,154 3,330 1,912,484
29 Per capita debt:
Data on the net general bonded debt of the City for the period 1995 through 2004 appears in the Statistical Section of this report. Such data at December 31 for the last five years is shown below. Population used in the calculations represents estimates by the Mid Ohio Regional Planning Commission for 2001 - 2004 and the U.S. Census Bureau for 2000. Bonded debt includes long-term notes but excludes the capitalized leases of $870 thousand and $2.0 million, the short term Sanitary Sewer enterprise notes of $1.366 million and the short term Electricity enterprise notes of $1.964 million. Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
(dollar amounts in thousands, except per capital debt) 2004 2003 2002 2001 2000 Gross bonded debt $ 1,909,154 1,677,098 1,776,312 1,733,404 1,697,710 Less Debt Service Funds for G.O. debt (182,841) (166,839) (165,985) (160,083) (148,677) Less TIF revenue bonds (61,585) (35,455) (36,905) (34,050) (30,050) Less TIF revenue long-term note (4,600) (3,058) (1,221) - - Less FNMA revenue note (27) (42) (66) (88) (117) Less payable from enterprise revenues: General obligation bonds Water (234,454) (222,656) (244,514) (228,592) (218,966) Sanitary Sewer (204,854) (194,097) (219,530) (227,204) (196,991) Storm Sewer (excludes $15.159 million supported by income tax revenues) (79,488) (48,980) (51,772) - - Electric (37,136) (26,080) (30,801) (63,758) (35,921) Revenue bonds and OWDA/EPA loans Water (39,160) (44,110) (48,790) (53,185) (57,205) Sanitary Sewer (442,932) (400,305) (360,865) (317,092) (291,638) Electric - - - - (44,600) Less payable by CRAA General obligation bonds (8,620) (13,500) (18,445) (23,435) (28,430) Net general bonded debt $ 613,457 521,976 597,418 625,917 645,115
Assessed property value $ 14,719,269 14,488,874 14,551,080 13,107,854 12,939,074
Population 754,876 743,343 734,024 720,230 711,470
Net general bonded debt per capita $ 812.66 702.20 813.89 869.05 906.74
Debt limitations:
The City is within all of its legal debt limitations, as described in Note G and in MD&A. More data regarding the City's notes payable and long-term obligations appear in Note G. Table 31 in the Statistical Section of this report contains data necessary to meet the disclosure requirements of Rule 15c2-12(b)(5)(i)(C) and (D) of the Securities and Exchange Commission (SEC).
30 Cash management:
Information about the City’s Deposits and Investment policies can be found in Note C – Cash and Investments in Notes to the Financial Statements. Cash and investments over the past five years have been:
(in thousands) 2004 2003 2002 2001 2000
Per Governmental Funds Balance Sheet- Total government funds Cash and investments with treasurer $ 500,795 327,456 412,752 483,594 505,368 Cash and investments with fiscal and escrow agents and other 455 430 390 395 328 Cash and cash equivalents with trustee 6,833 - - - - Investments 3,146 3,244 3,383 3,295 3,280 Per Proprietary Funds Statement of Net Assets Total Enterprise Funds Cash and cash equivalents with treasurer 97,830 104,596 131,122 111,316 89,544 Restricted cash and cash equivalents with treasurer and other 135,047 63,632 102,202 66,902 36,734 Restricted cash and cash equivalents with trustee 8,929 8,677 8,571 8,133 16,450 Internal Service Funds Cash and cash equivalents with treasurer 10,664 19,060 37,618 32,906 23,393 Agency Funds – cash, cash equivalents and investments 68,413 54,959 39,816 38,574 37,230 Total $ 832,112 582,054 735,854 745,115 712,327
Descriptions, amounts, and the City’s safeguarding (custodianship and collateralization) policies are recited in Note C.
Risk management:
Property and liability coverage:
The City assumes the liability for most property damage and personal injury risks. Judgments and claims, including those incurred but not reported as of year end, are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The City does reduce its exposure to high risks, however, through various insurances and employee safety programs. Details about insurance can be found in part j of Note A – Summary of Significant Accounting Policies in the Notes to the Financial Statements and in Table 27 of the Statistical Tables.
Litigation experience:
As stated in Note B, the City is a defendant in a number of lawsuits pertaining to matters which are incidental to performing routine governmental and other functions. At December 31, 2004, claims approximating $284.72 million were outstanding against the City. Based on the current status of all these legal proceedings, it is the opinion of management that ultimate resolution of such will not have a material effect on the City's financial statements.
31 The City Attorney represents the City in all legal matters. Following is a summary of experience of the City over the last ten years of those claims resulting in litigation.
Cases Filed Cases Closed Amount Period Number Seeking Number Seeking Paid by City
1995 527 $ 200,515,923 274 $ 308,133,105 $ 1,449,802
1996 587 374,030,995 253 360,217,314 1,895,454
1997 436 362,432,071 215 25,307,846 1,144,248
1998 300 95,962,919 369 383,901,846 3,055,966
1999 231 79,002,119 343 76,583,495 3,337,192
2000 255 111,909,000 279 498,431,450 1,098,284
2001 246 56,255,348 401 106,040,956 669,670 2002 291 831,062,292 282 93,173,415 1,285,529 2003 275 218,148,172 258 847,660,342 452,919 2004 341 98,909,891 243 77,687,995 1,833,891
Cases filed and cases closed include those cases not seeking monetary damages. Cases filed in 2002 for $831.062 million include $727 million of claims filed by 3 pro se claimants; dismissed in 2003. Cases filed in 2003 for $218.148 million include a $150.0 million claim filed by 1 pro se claimant which remains open at December 31, 2004. The amount paid by the City in 2004 includes $1 million paid to the estate of a decedent in a wrongful death claim.
The City Code permits department heads to settle and pay small claims against the City in amounts not to exceed $2,500 per claim. The City Attorney can settle claims not exceeding $20,000. Claims greater than $20,000 require approval of a majority of the City Council. The above table represents only those claims resulting in litigation.
Other:
The City provides medical, dental, and vision coverage for its employees on a self-insurance basis. Expenses for claims are recorded on a current basis based on an actuarially determined charge per employee. Financial activity recording claims and the payment thereof is accounted for in an Internal Service Fund.
Workers' compensation claims are covered through the City's participation in the State of Ohio's program.
Fiduciary Operations-Employee Retirement Systems:
State and local government employees in Ohio, with few exceptions, are members of one of five retirement systems. These retirement systems were created pursuant to Ohio statutes and are administered by state created boards of trustees. Boards are comprised of a combination of elected members from the respective retirement system's membership and ex-officio members from certain state and local offices.
These five retirement systems are:
• Ohio Public Employees Retirement System (OPERS), created in 1935, represents state and local government employees not included in one of the other four systems. Management of the fund indicates membership of approximately 375,000 actively employed members. At December 31, 2004 assets of this pension fund approximated $65.2 billion. More data on this pension fund are shown in Note K of this report.
• State Teachers Retirement System of Ohio (STRS), created in 1920, represents teachers in Ohio's public schools from kindergarten through university level. Management of the fund indicates membership of approximately 179,000 actively employed members. At June 30, 2004 assets of this pension fund approximated $54.6 billion.
32 • Ohio Police and Fire Pension Fund (OP&F), created in 1966, represents sworn personnel, not civilians, employed in police and fire divisions in Ohio's local governments. Management of the fund indicates membership of approximately 28,268 actively employed members. At December 31, 2004 assets of this pension fund approximated $9.7 billion. All of the City's police and fire officers are members of this pension fund. More data on this pension fund are shown in Note K of this report.
• School Employees Retirement System of Ohio (SERS), created in 1937, represents non-teaching employees in Ohio's public schools. Management of the fund indicates membership of approximately 123,000 actively employed members. At June 30, 2004 assets of this pension fund approximated $8.28 billion.
• State Highway Patrol System of Ohio (SHP), created in 1941, represents the state's highway patrol troopers. Management of the fund indicates membership of approximately 1,572 actively employed members and assets of approximately $684 million at December 31, 2004.
The City's civilian personnel are members of OPERS. All sworn police and fire persons are members of OP&F. Both OPERS and OP&F are multiple-employer public employee retirement systems. Following are the number of City employees covered under the respective state retirement systems at December 31 of the past five years.
2004 2003 2002 2001 2000
Police (OP&F) 1,842 1,843 1,827 1,810 1,795 Fire (OP&F) 1,546 1,539 1,534 1,518 1,530 Civilians (OPERS) 4,954 5,153 5,424 5,634 5,644 Total employees 8,342 8,535 8,785 8,962 8,969
The relationship of the City's payrolls to the retirement systems is demonstrated in the table below. The City's total payrolls for the last five years were as follows: 2004 2003 2002 2001 2000 (in millions)
Payrolls subject to OPERS $ 212.6 212.9 211.9 206.3 197.3 Payrolls subject to OP&F 210.1 197.1 192.4 188.5 175.4 Payrolls not subject to pension benefit calculation 6.1 5.7 6.3 7.1 7.5 Total $ 428.8 415.7 410.6 401.9 380.2
Over the past five years the City and its employees have paid the following amounts to OPERS and OP&F.
2004 2003 2002 2001 2000 (in thousands) Paid by City to: OPERS $ 46,660 46,736 46,457 45,208 37,655 OP&F 59,032 56,088 55,560 54,255 50,909 Total paid by City 105,692 102,824 102,017 99,463 88,564
Paid by employees to: OPERS 221 225 268 286 314 OP&F 7,346 6,115 5,049 4,989 4,510 Total paid by employees 7,567 6,340 5,317 5,275 4,824
Total $ 113,259 109,164 107,334 104,738 93,388
The City is current in all of its required contributions to the respective pension funds. The pension plans and other post-employment benefits for health care are explained in Note K.
33
City of Columbus, Ohio
35
ORGANIZATION CHART OF THE CITY OF COLUMBUS THE CITIZENS OF COLUMBUS
MUNICIPAL MUNICIPAL CITY COUNCIL CITY AUDITOR MAYOR COURT CLERK COURT JUDGES CITY ATTORNEY
CITY CLERK INCOME TAX CIVIL
CITY TREASURER ASSET RECOVERY
PROSECUTOR
EQUAL BUSINESS COMMUNITY RELATIONS EDUCATION OPPORTUNITY COMMISSION REAL ESTATE
FINANCE HUMAN RESOURCES TECHNOLOGY
PURCHASING LABOR RELATIONS TELECOMMUNICATIONS 36
INFORMATION SERVICES
TRUSTEES OF THE CIVIL SERVICE BOARD OF HEALTH RECREATION & PARKS SINKING FUND COMMISSION COMMISSION
SINKING FUND CIVIL SERVICE HEALTH RECREATION & PARKS PUBLIC SAFETY PUBLIC SERVICE PUBLIC UTILITIES DEVELOPMENT
ASSESSMENT & HEALTH PARKS POLICE REFUSE COLLECTION WATER ECONOMIC INFORMATION DEVELOPMENT
HEALTH SERVICES RECREATION FIRE TRANSPORTATION SANITARY SEWERS BUILDING SERVICES ELECTED OFFICIALS ENVIRONMENTAL HEALTH GOLF COMMUNICATIONS FLEET MANAGEMENT STORM SEWERS HOUSING
DEPARTMENT SUPPORT SERVICES COAAA FACILITIES MANAGEMENT ELECTRICITY PLANNING
NEIGHBORHOOD POLICY-MAKING SERVICES BODY DOWNTOWN DIVISION DEVELOPMENT LAND FEBRUARY 2005 MANAGEMENT City of Columbus, Ohio
LIST OF PRINCIPAL OFFICIALS
MAYOR Michael B. Coleman
CITY COUNCIL Matthew D. Habash, President Kevin L. Boyce Mary Jo Hudson Michael C. Mentel Maryellen O’Shaughnessy Charleta B. Tavares Patsy A. Thomas
CITY ATTORNEY Richard C. Pfeiffer, Jr.
CITY AUDITOR Hugh J. Dorrian, CPA
CITY TREASURER Thomas M. Isaacs
DEPARTMENT OF FINANCE Joel Taylor
SECRETARY OF THE SINKING FUND David Irwin
CITY CLERK Andrea Blevins, CMC
37
City of Columbus, Ohio
Office of the City Auditor Staff
Robert L. McDaniel Deputy Auditor Darlene Wildes Short Special Assistant Vikki Vincent Amicon Chief Accountant Brad Marburger Assistant Chief Accountant Julie Burkart Assistant Auditor III Timothy J. Carroll Payroll Auditing Supervisor Mike Gore Administrative Analyst II
Mary Kay Boerner Patricia Hinkle Flor Rafiee Bonnie Buck Vivian James Mary Raphael Sharlene Campbell Megan Kilgore Kathy Rowe Rebecca Cox Paul Kuppich Charles Bruce Scott Mary Lou Davis Jacqueline Marburger Tony Sestito Richard Ellis Margaret McDougald Donna Thornwell Barbara Forest Jason Musick Patricia Harrell
Hugh J. Dorrian, CPA City Auditor Terms of Office September 8, 1969 ► December 31, 1969 January 1, 1970 ► December 31, 1973 January 1, 1974 ► December 31, 1977 January 1, 1978 ► December 31, 1981 January 1, 1982 ► December 31, 1985 January 1, 1986 ► December 31, 1989 January 1, 1990 ► December 31, 1993 January 1, 1994 ► December 31, 1997 January 1, 1998 ► December 31, 2001 January 1, 2002 ►
38
FINANCIAL SECTION
Deloitte & Touche LLP 155 East Broad Street 18th Floor Columbus, OH 43215-3611 USA Tel: 614-221-1000 Fax: 614-229-4647 www.deloitte.com
INDEPENDENT AUDITORS’ REPORT
The Honorable Hugh J. Dorrian City Auditor City of Columbus, Ohio
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Columbus, Ohio (the “City”), as of and for the year ended December 31, 2004, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. These financial statements are the responsibility of the City’s management. Our responsibility is to express an opinion on the respective financial statements based on our audit. We did not audit the financial statements of Columbus Urban Growth Corporation. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for Columbus Urban Growth Corporation, is based solely on the report of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the respective financial statements are free of material misstatement. The financial statements of Columbus Urban Growth Corporation were not audited in accordance with Government Auditing Standards, but were audited in accordance with auditing standards generally accepted in the United States of America. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the respective financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective net assets or financial position of the governmental activities, business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Columbus, Ohio, as of December 31, 2004, and the respective changes in financial position and respective cash flows, where applicable thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note S, the beginning net assets of the business-type activities and the Water and Sanitary Sewer funds, in the accompanying December 31, 2004 financial statements, have been restated.
Member of 39 Deloitte Touche Tohmatsu The Management’s Discussion and Analysis on pages 41-56 and Budgetary Comparison Schedule- General Fund on page 129 is not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. This supplementary information is the responsibility of City of Columbus’ management. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit such information and we do not express an opinion on it.
Our audit was conducted for the purpose of forming an opinion on the City’s respective financial statements that collectively comprise the City’s basic financial statements. The Introductory Section, supplementary information on pages 133-214, and Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. This supplementary information is the responsibility of City’s management. The supplementary information on pages 133-214 has been subjected to the auditing procedures applied by us in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.
In accordance with Government Auditing Standards, we have also issued our report dated April 19, 2005, on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
April 19, 2005
40 CITY OF COLUMBUS, OHIO
Management’s Discussion and Analysis
As management of the City of Columbus (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2004. We encourage readers to consider the information presented here in conjunction with our letter of transmittal at the front of this report and the City’s financial statements, which follow this section.
Financial Highlights
¾ The assets of the City exceeded its liabilities at the close of 2004 by $1.8 billion. Of this amount, $248.9 million is considered unrestricted. The unrestricted net assets of the City’s governmental activities are $105.3 million and may be used to meet the government’s on- going obligations. The unrestricted net assets of the City’s business type activities are $143.6 million and may be used to meet the on-going obligations of the City’s business- type activities, including the water, sanitary sewer, storm sewer, and electricity enterprises. ¾ The City’s total net assets increased $151.0 million in 2004. Net assets of the governmental activities increased $111.0 million, which represents an 11.6 percent increase from 2003. Net assets of the business-type activities increased $40.0 million or 5.5 percent from 2003. ¾ The total cost of the City’s programs increased $63.8 million or 6.0 percent. The cost of governmental activities increased $54.1 million or 6.9 percent, while the cost of business- type activities increased $9.7 million or 3.5 percent. ¾ As of the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $512.9 million. The combined governmental funds fund balance increased $173.9 million from the prior year’s ending fund balance. Approximately $236.2 million of the $512.9 million fund balance is considered unreserved at December 31, 2004. ¾ The general fund reported a fund balance of $104.2 million at the end of the current fiscal year. The unreserved fund balance for the general fund was $93.7 million or 17.3 percent of total general fund expenditures (including transfers out). There was a $51.1 million increase in the total general fund balance for the year ended December 31, 2004. ¾ The City’s total debt increased by $256.4 million (15.0 percent) during the current fiscal year. The City sold $302.935 million of general obligation bonds on July 13, 2004. These bonds consisted of $298.5 million in various purpose new bonds and $4.435 million in refunding bonds. Governmental and business-type activities paid $163.5 million on general obligation and revenue bond maturities in 2004 and the City’s sewer enterprise fund, a business-type activity, issued $66.7 million in Ohio Water Development Authority revenue obligations for various projects.
41 Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. As discussed in Note S to the financial statements, the City restated Management’s Discussion and Analysis which gives effect to those restatements.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to private-sector business. The statement of net assets presents information on all of the City’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. Thus, revenue and expenses reported in this statement for some items will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees or charges (business-type activities). The governmental activities of the City include general government, public service, public safety, development, health, and recreation and parks. The business-type activities of the City include four enterprise activities: a water system, a sanitary sewer system, a storm sewer system, and an electricity distribution system.
The government-wide financial statements can be found on pages 59 – 61 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
42 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 90 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the general bond retirement debt service fund, and the special income tax debt service fund, all of which are considered to be major funds. Data for the other 87 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 62 – 65 of this report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sanitary sewer, storm sewer, and electricity distribution operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions, including employee benefits self-insurance, fleet management, information services, purchasing/contracts, telecommunications, and land acquisition. The services provided by these funds predominantly benefit the governmental rather than the business-type functions. They have been included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provided separate information for the water, sanitary sewer, storm sewer, and electricity distribution operations. The water, sanitary sewer, and electricity enterprise funds are considered to be major funds of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 66 – 69 of this report.
43 Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on page 70 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 71 – 126 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s general fund budget. The City adopts an annual appropriation budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. Required supplementary information can be found on pages 127 – 131 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplemental information. Combining and individual fund statements and schedules can be found on pages 133 – 214 of this report.
City of Columbus Net Assets (amounts expressed in thousands)
1 Governmental activities Business-type activities Total 2004 2003 2004 2003 2004 2003 Current and other assets$ 793,424 684,692 315,438 241,462 1,108,862 926,154 Capital assets 1,397,392 1,306,189 1,570,307 1,490,885 2,967,699 2,797,074 Total assets $ 2,190,816 1,990,881 1,885,745 1,732,347 4,076,561 3,723,228 Long-term liabilities outstanding 942,445 793,355 1,080,950 971,069 2,023,395 1,764,424 Other liabilities 180,456 240,640 36,144 32,592 216,600 273,232 Total liabilities $ 1,122,901 1,033,995 1,117,094 1,003,661 2,239,995 2,037,656 Net assets $ 1,067,915 956,886 768,651 728,686 1,836,566 1,685,572 Invested in capital assets, net of related debt 686,418 588,676 623,255 528,665 1,309,673 1,117,341 Restricted 276,223 298,983 1,755 61,587 277,978 360,570 Unrestricted 105,274 69,227 143,641 138,434 248,915 207,661 Total net assets $ 1,067,915 956,886 768,651 728,686 1,836,566 1,685,572
1Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
44 Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. The City’s assets exceeded liabilities by $1.8 billion at the close of the most recent fiscal year.
The largest portion of the City’s net assets (71 percent) reflects its investment in capital assets (e.g. land, buildings, improvements other than buildings, machinery and equipment, and infrastructure); less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; therefore, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net asset (15 percent) represents resources that are subject to restrictions as to how they may be used. The remaining balance of unrestricted net assets ($248.9 million) may be used to meet the government’s on-going obligations to citizens and creditors. It is important to note that although the total unrestricted net assets is $248.9 million; the unrestricted net assets of the City’s business-type activities ($143.6 million) may not be used to fund governmental activities.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities.
Overall net assets of the City increased $151.0 million in 2004. Net assets for governmental activities increased $111.0 million, while net assets for business-type activities increased $40.0 million. The increase in governmental activities net assets is primarily attributable to the $55.1 million payment received from the Solid Waste Authority of Central Ohio (SWACO) in 2004 for partial satisfaction of lease rental payments due the City as fully described in Note H. In addition, the City continued efforts to contain costs and pursue new revenue sources. The increase in net assets for business-type activities was the result of the aggregate business- type activities holding expenses to 88.5 percent of total revenue for the year. Due to rate increases in the water, sanitary sewer, and storm sewer enterprise funds of 7.2 percent, 9.5 percent and 5.2 percent, respectively, and an increase in water pumpage in 2004, total business-type charges for services were up $31.8 million. Business-type activities expenses for 2004 increased $9.7 million or 3.5 percent over the comparable expenses in 2003.
There was a decrease of $22.7 million in restricted net assets reported in connection with the City’s governmental activities. The decrease in amounts restricted for capital projects and offsetting increase in amounts restricted for debt service was a result of several transactions, including the issuance of new debt in 2004 and the expenditures of funds on capital projects funded by bonds.
There was an increase of $97.7 million in the governmental activities amount invested in capital assets, net of related debt, as bond proceeds were used to complete certain capital projects in 2004.
45 The decrease of $59.8 million in restricted net assets reported for the City’s business-type activities was primarily due to the payment of bond maturities and the use of bond funds to complete capital projects in 2004. City of Columbus Changes in Net Assets (amounts expressed in thousands)
1 Governmental activitites Business-type activities Total 2004 2003 2004 2003 2004 2003 Revenues-- Program revenues: Charges for services $ 129,939 115,000 318,129 286,292 448,068 401,292 Operating grants and contributions 123,855 104,892 - - 123,855 104,892
Capital grants and contributions 48,920 43,837 1,599 299 50,519 44,136 General revenues: Income taxes 454,999 436,842 - - 454,999 436,842 Shared revenues 58,935 56,878 - - 58,935 56,878 Property taxes 45,891 45,660 - - 45,891 45,660 Investment earnings 7,288 8,196 2,340 2,975 9,628 11,171 Other taxes 14,797 14,406 - - 14,797 14,406 Other 68,296 13,362 5,035 3,089 73,331 16,451 Total revenues $ 952,920 839,073 327,103 292,655 1,280,023 1,131,728
Expenses: General government $ 84,398 84,083 - - 84,398 84,083 Public service 136,953 124,418 - - 136,953 124,418 Public safety 401,917 371,649 - - 401,917 371,649 Development 60,348 53,206 - - 60,348 53,206 Health 37,191 37,229 - - 37,191 37,229 Recreation and parks 85,012 76,780 - - 85,012 76,780 Interest on long-term debt 33,660 38,036 - - 33,660 38,036 Water - - 96,381 91,796 96,381 91,796 Sanitary sewer - - 114,721 114,522 114,721 114,522 Storm sewer - - 22,172 18,606 22,172 18,606 Electric - - 56,276 54,872 56,276 54,872 Total expenses $ 839,479 785,401 289,550 279,796 1,129,029 1,065,197 Increase in net assets before transfers 113,441 53,672 37,553 12,859 150,994 66,531 Transfers (2,412) (5,812) 2,412 5,812 - - Increase (decrease) in net assets 111,029 47,860 39,965 18,671 150,994 66,531 Net asset -- January 1st $ 956,886 909,026 728,686 710,015 1,685,572 1,619,041 Net asset -- December 31st $ 1,067,915 956,886 768,651 728,686 1,836,566 1,685,572
1Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
46 Governmental activities. Governmental activities increased the City’s net assets by $111.0 million. Key elements of the changes in net assets are as follows: ¾ Charges for services increased $14.9 million or 13.0 percent. ¾ Income tax revenue increased $18.2 million or 4.2 percent on a full accrual basis. This increase is attributed to the current state of the local economy. ¾ Capital grants and contributions increased $5.1 million or 11.6 percent due to an increase in grant revenue for public service projects in 2004. ¾ Other general revenues increased $54.9 million primarily as a result of the SWACO payment discussed above.
The increase in governmental activities charges for services was in the public safety function and was primarily due to the increase in emergency medical transportation fees. This fee was initiated in 2003; however, 2004 was the first year the City received revenue from this fee for an entire year. Income tax revenue, which represents 48% of the City’s governmental revenue, increased $18.2 million in 2004. The income tax increase is attributed to the current state of the local economy. In May 2004, the City received $55.1 million from SWACO for partial satisfaction of lease rental payments due the City as part of a lease agreement in place since 1993. This transaction is fully described in Note H of the Notes to the Financial Statements included in this report.
2004 REVENUE SOURCES Governmental Activities
Income Taxes Capital grants and 48% contributions 5%
Operating Grants and Contributions 13%
Property Taxes 5%
Charges for Services 14% Other Taxes Other 1% Investment Earnings Shared Revenue 7% 1% 6%
47 2003 REVENUE SOURCES Governmental Activities
Capital grants and Income taxes contributions 52% 5%
Property taxes 5%
Operating grants and contributions 13% Other taxes Charges for services Investment earnings 2% 14% Other 1% Shared revenue 1% 7%
2004 EXPENSE AND PROGRAM REVENUES Governmental Activities $450,000
$400,000
$350,000
$300,000
$250,000
$200,000 in Millions $150,000
$100,000
$50,000
$- General Public service Public safety Development Health Recreation and Interest on long- government parks term debt
Expense Program Revenues
48 2003 EXPENSE AND PROGRAM REVENUES Governmental Activities
$400,000
$350,000
$300,000
$250,000
$200,000
in Millionsin $150,000
$100,000
$50,000
$- General Public service Public safety Development Health Recreation and Interest on government parks long-term debt
Expense Program Revenues
Business-type activities. Business-type activity net assets increased by $40.0 million. Key elements of changes in net assets are as follows.
¾ Charges for services increased $31.8 million or 11.1 percent. ¾ The transfers of $2.4 million in 2004 represent transfers from the special income tax debt service fund to the storm sewer enterprise fund for debt related payment. ¾ Expenses increased $9.7 million or 3.5 percent in 2004.
The increase in business-type activities net assets was $40.0 million. Charges for services, which comprise 97.3% of the business-type activities revenues, increased as a resulted of rate increases in the water, sanitary sewer, and storm sewer enterprise funds of 7.2 percent, 9.5 percent, and 5.2 percent, respectively, and an increase in water pumpage in 2004. The business-type activities continued the pattern of cost containment relative to the level of revenues for enterprise activities in 2004. The percent of annual expense to annual revenue was 88.5 percent in 2004.
49 2004 REVENUE SOURCES 2003 REVENUE SOURCES Business-type Activities Business-type Activities
Charges for Charges for services services 97.3% 97.8%
Other 1.1% Capital Grants and Investment Capital Grants and Investment Contributions Other Earnings Contributions Earnings 0.5% 1.5% 1.0% 0.1% 0.7%
2004 EXPENSE AND PROGRAM REVENUES Business-type Activities $140,000 $120,000 $100,000 $80,000 Expense $60,000
in Millions in $40,000 Program Revenues $20,000 $- Water Sanitary Sewer Storm Sewer Electric
2003 EXPENSE AND PROGRAM REVENUES Business-type Activities $120,000 $100,000 $80,000 $60,000 Expense $40,000
in Millions in Program Revenues $20,000 $- Water Sanitary Sewer Storm Sewer Electric
50 Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of December 31, 2004, the City’s governmental funds reported combined ending fund balances of $512.9 million, an increase of $173.9 million in comparison with the prior year. Approximately $236.2 million of this amount constitutes unreserved fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed to liquidate contracts and purchase orders of the prior period and for non-current loans receivable.
The general fund is the chief operating fund of the City. At December 31, 2004, unreserved fund balance of the general fund was $93.7 million, while total fund balance was $104.2 million. As a measure of the general fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures (including transfers out). Unreserved fund balance represents 17.3 percent of total general fund expenditures (including transfers out), while total fund balance represents 19.2 percent of that same amount.
The fund balance of the City’s general fund increased by $51.1 million during 2004 - the first increase in the general fund’s fund balance since 2000. Key factors in the improved results are as follows: ¾ Total revenues (including transfers in) increased $69.3 million or 13.2 percent. This increase is primarily attributed to the $55.1 million received from SWACO during 2004, as discussed above. ¾ Income tax revenue, which represents 57.9 percent of general fund revenues (including transfers in), increased $14.9 million or 4.5 percent. ¾ Charges for services increased $3.7 million or 10.8 percent primarily due to charges for emergency medical transportation. ¾ Expenditures (including transfers out) only increased by $12.5 million or 2.3 percent. In 2004, the City continued its commitment to cost containment. In 2003, expenditures in the general fund decreased $11.5 million. That decrease (2003 vs. 2002) was the first year-to-year decrease since the City’s first began issuing financial reports in accordance with generally accepted accounting principles in 1979.
The general bond retirement debt service fund has a total fund balance of $1.162 million. The net decrease in fund balance during 2004 in this fund was approximately $164 thousand. The
51 general bond retirement fund is funded primarily with income tax revenue at the level necessary to meet debt service requirements.
The special income tax debt service fund has a total fund balance of $172.2 million. The net increase in fund balance during 2004 in this fund was approximately $20.9 million. One quarter of the City’s income tax revenue is set aside to meet debt service requirements for governmental activity type debt. Those income tax revenues not required in the general bond retirement fund, as noted above, are recorded in the special income tax fund.
Proprietary funds. The City’s proprietary funds financial statements provide the same information found in the government-wide financial statements, but in more detail.
Unrestricted net assets at the end of the year amounted to $55.4 million, $72.6 million, $11.2 million, and $2.9 million for the water, sanitary sewer, storm sewer, and electricity enterprises, respectively. The growth in net assets in the water, sanitary sewer, storm sewer, and electricity enterprise funds was $12.3 million, $19.3 million, $5.3 million, and $4.4 million, respectively. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities.
General Fund Budgetary Highlights
The final amended general fund budget had total appropriations of approximately $24.5 million more than the original budget. The total original appropriations, including those for transfers out, were $533.8 million, while the final appropriations were $558.3 million. Final 2004 appropriations were only 1.7 percent higher than the final 2003 appropriations and 1.0 percent higher than actual 2004 budget basis expenditures. In order to balance the 2004 budget, the City had to use $25 million from its economic stabilization subfund, a component of the general fund. In 2003, the City used funds (approximately $10.2 million) from the economic stabilization fund for the first time since it was established in 1988.
52 Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for governmental and business-type activities as of December 31, 2004, amounts to $3.0 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings, systems, improvements, machinery and equipment, park facilities, roads, curbs and gutters, streets and sidewalks, and drainage systems. The total increase in the City’s investment in capital assets for 2004 was 6.1 percent (a 7.0 percent increase for governmental activities and a 5.3 percent increase for business- type activities).
Capital Assets, net of depreciation (amounts expressed in thousands)
Governmental activitites Business-type activities Total 2004 2003 2004 2003 2004 2003 Land $ 204,895 195,303 45,595 45,364 250,490 240,667 Buildings 221,786 203,891 67,453 71,721 289,239 275,612 Improvements other than buildings 103,000 89,010 1,253,157 1,162,377 1,356,157 1,251,387 Machinery and equipment 56,839 58,424 20,095 23,397 76,934 81,821 Infrastructure 810,872 759,561 79,194 71,249 890,066 830,810 Construction in progress - - 104,813 116,777 104,813 116,777 Total $ 1,397,392 1,306,189 1,570,307 1,490,885 2,967,699 2,797,074
Major capital asset events during 2004 included the following: ¾ Total capital assets, net of accumulated depreciation, increased $170.6 million. ¾ Business-type activity capital assets increased by $79.4 million or $129.3 million, net of $49.9 million in current year depreciation expense. The increase was due to: $8 million in water plant and water line improvements; $49 million in sanitary sewer plant improvements; $40 million in sanitary sewer line improvements; $3 million street light, transformer and cable improvements and expansion in electricity division; and $29.3 million in other improvements. ¾ Governmental activity capital assets increased by $91.2 million or $140.5 million, net of $49.3 million in current year depreciation expense. This increase was due to: $23 million in donated streets; $59 million in traffic signals and other street improvements; $20 million in land and other improvements related to new and future park sites; $2 million in fire station building and rehabilitation; $5 million in fire and police vehicles; $15.5 million related to the police academy, central safety building and police substations; and $16 million in other improvements. Additional information on the City’s capital assets can be found in Note F on pages 92 – 93 of this report.
53 Long-term debt. At December 31, 2004, the City, the primary government, had $1.96 billion of long-term bonds and loans outstanding. All assessment bonds and notes issued by the City are general obligation bonds and notes ($75 thousand in governmental activities bonds; $5.04 million in business-type activities bonds and notes, respectively) and are included herein. The remainder of the City’s debt represents bonds secured solely by specified revenue sources (i.e. revenue bonds).
City of Columbus General Obligation and Revenue Bonds Outstanding (amounts expressed in thousands)
1 Governmental activitites Business-type activities Total 2004 2003 2004 2003 2004 2003 General obligation bonds, notes and capital leases $ 821,438 699,675 584,944 521,703 1,406,382 1,221,378 Revenue bonds 63,276 38,555 491,640 444,992 554,916 483,547 Total $ 884,714 738,230 1,076,584 966,695 1,961,298 1,704,925
1Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
Total long-term bonds and loans outstanding at December 31, 2004 increased $256.4 million or 15.0 percent as compared to the amount outstanding at December 31, 2003. Key events contributing to the change in long-term debt balances are as follow: ¾ On July 13, 2004, the City sold $302.935 million of general obligation bonds. This bond issue included $298.5 million of new money for various projects ($184.08 million and $114.42 million, governmental and business-type activities, respectively) and $4.435 million in refunding bonds ($1.610 million and $2.825 million, governmental and business-type activities, respectively). ¾ On October 28, 2004, the City issued $20 million of tax increment financing (TIF) supported governmental type debt for the City’s Polaris project. The new TIF debt raised additional capital of $15.9 million for the project, but also refunded $2.1 million of then outstanding TIF variable rate debt for the same project. ¾ On November 23, 2004, the City issued $36.430 million of TIF supported governmental type debt for the City’s Easton project. This new TIF debt raised additional capital for the project, capital for the City’s downtown area remote from the TIF district and refunded/defeased existing TIF bonds related to the project. The refunding/defeasance, not transacted for the economic gain, eliminated certain restrictive covenants contained in the earlier bond indenture. ¾ At various dates throughout 2004, the City issued additional governmental activities long term notes to the Ohio Public Works Commission for $696 thousand; business-type activities long term notes to the Ohio Water Development Authority for the sanitary sewer enterprise of $66.711 million; $1.366 million of general obligation assessment notes for the sanitary sewer enterprise; and $739 thousand of general obligation assessment notes for the electricity enterprise. 54 The City’s general obligation bond ratings by Standard & Poor’s Corporation and Moody’s Investor Services, Inc. are “AAA” and “Aaa”, respectively. The City’s bond ratings are shown in the following table.
Standard & Type Moody's Poor's General Obligation Bonds – Fixed Rate Aaa AAA General Obligation – Variable Rate Demand Bond Aaa/VMIG1 AAA/A1+ 1999 Water System Revenue Refunding Bonds Aa2 AA 1994 Sanitary Sewer System Adjustable Rate Refunding Revenue Bonds Aa2/VMIG1 AA/A1+ 2002 Sanitary Sewer System Revenue Refunding Bonds Aa2 AA
The City is within all of its legal debt limitations. The Ohio Revised Code provides that the net debt (as defined in the Ohio Revised Code) of a municipal corporation, whether or not approved by the electors, shall not exceed 10.5% of the total value of all property in the municipal corporation as listed and assessed for taxation. In addition, the unvoted net debt of municipal corporations cannot exceed 5.5% of the total taxation value of property. The statutory limitations on debt are measured by the ratio of net debt to tax valuation and expressed in terms of a percentage. At December 31, 2004, the City's total net debt amounted to 4.15% of the total assessed value of all property within the City. Unvoted net debt amounted to 0.63% of the total assessed value of all property within the City. The City had a legal debt margin for total debt of $934.851 million and a legal debt margin for unvoted debt of $716.333 million. The aggregate amount of the City's unvoted debt is also subject to overlapping debt restrictions with other political subdivisions. The actual aggregate amount of the City's unvoted debt, when added to that of other political subdivisions within the respective counties in which Columbus lies, is limited to ten mills. This millage is measured against the property values in each overlapping district. At December 31, 2004, the millage amounts were as follows:
Mills Required Franklin Fairfield Delaware Political subdivision of State of Ohio County County County Direct City of Columbus 4.5037 4.5037 4.5037
Overlapping County 0.5770 1.6625 2.0554 School District 0.7782 - - JVSD - - 0.0211 Total 5.8589 6.1662 6.5802 Maximum millage permitted 10.0000 10.0000 10.0000
Additional information regarding the City’s long-term debt can be found in Note G on pages 93 – 108 of this report.
55 Economic Factors and Next Year’s General Fund Budget
The City’s key objectives set for the 2005 budget were jobs, safety, and long-term fiscal stability. With the uncertainty surrounding the economy, the City considered the impact on two primary revenue sources: income tax revenue and state shared revenue.
In the 2005 budget process City Council decided that it was important to: 1) continue the City’s investment in job creation; 2) put the highest premium on safety for the people of Columbus and City employees; and 3) adopt a budget designed to promote long-term fiscal stability. In order to meet the objectives of the 2005 budget, the City recognized the need to continue its pattern of cost containment while pursuing new revenue sources.
General fund expenditure appropriations for 2005 have been approved by City Council in the amount of $561.4 million. This appropriation level is approximately $8.8 million more than actual 2004 general fund budgetary basis expenditures (including transfers out). The appropriation level was set based on estimated revenues (including transfers in) in the general fund of $564.6 million for 2005. The City continues to pursue cost containment opportunities.
Request for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show accountability for the money it receives. This report is also available on the City’s website at www.cityofcolumbus.org. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Auditor’s Office, 90 West Broad Street, Columbus, Ohio, 43215.
56
BASIC FINANCIAL STATEMENTS
57 City of Columbus, Ohio
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58
City of Columbus, Ohio Exhibit 1 Statement of Net Assets December 31, 2004 (amounts expressed in thousands) Primary Government Component Units Governmental Business-type Activities Activities Total CUGC RiverSouth ASSETS Cash and cash equivalents with treasurer$ 511,459 $ 97,830 $ 609,289 $ - $ - Cash and cash equivalents with fiscal and escrow agents and other 7,288 - 7,288 192 - Investments 3,146 - 3,146 - - Receivables (net of allowance for uncollectibles) 204,276 55,341 259,617 - - Due from: Other governments 50,801 - 50,801 - Others 10,965 - 10,965 975 - Due from component unit 4,480 - 4,480 - - Investment in capital lease with primary government - - - - 2,000 Internal Balances (3,149) 3,149 - - - Inventory 684 13,475 14,159 - - Deferred charges and other 3,474 1,660 5,134 220 187 Restricted assets: Cash and cash equivalents with treasurer and other - 135,047 135,047 - - Cash and cash equivalents with trustees - 8,929 8,929 719 20,620 Accrued interest receivable - 7 7 - 29 Property held for development - - - 6,046 - Capital Assets: Land and construction in progress 204,895 150,408 355,303 - - Other capital assets, net of accumulated depreciation 1,192,497 1,419,899 2,612,396 11,649 - Total assets 2,190,816 1,885,745 4,076,561 19,801 22,836 LIABILITIES Accounts payable and other current liabilities 32,625 10,574 43,199 630 60 Customer deposits - 370 370 - - Accrued wages and benefits 36,066 3,031 39,097 - - Accrued interest payable 8,971 7,967 16,938 - - Due to: Other Governments 3,533 64 3,597 - - Other 10,650 77 10,727 - - Due to primary government - - - 4,480 - Matured bonds and interest payable 1,709 - 1,709 - - Payable from restricted assets: Accounts payable - 5,450 5,450 - - Due to other - 34 34 - - Accrued interest - 7,174 7,174 - - Deferred revenue and other 86,902 1,403 88,305 916 - Current portion of: Accrued vacation and sick leave 39,500 4,366 43,866 - - Capital lease 870 - 870 - - Notes payable 316 1,964 2,280 1,292 - Bonds payable 80,188 78,470 158,658 515 - Long-term portion of: Accrued vacation and sick leave 18,231 - 18,231 - - Capital lease with component unit 2,000 - 2,000 - - Notes payable 4,221 1,366 5,587 550 - Bonds payable, net 797,119 994,784 1,791,903 10,134 38,315 Total liabilities 1,122,901 1,117,094 2,239,995 18,517 38,375
NET ASSETS Invested in capital assets, net of related debt 686,418 623,255 1,309,673 649 - Restricted for: Capital projects 21,951 - 21,951 - 20,620 Debt service 207,144 1,755 208,899 - - Other purposes 47,128 - 47,128 218 - Unrestricted 105,274 143,641 248,915 417 (36,159) Total net assets $ 1,067,915 $ 768,651 $ 1,836,566 $ 1,284 $ (15,539)
The notes to the financial statements are an integral part of this statement.
59 City of Columbus, Ohio Statement of Activities For the Year Ended December 31, 2004 (amounts expressed in thousands)
Program Revenues
Charges for Operating Grants Capital Grants and Functions/Programs Expenses Services and Contributions Contributions
Governmental activities: General government$ 84,398 $ 54,857 $ 17,264 $ 322 Public service 136,953 15,462 30,449 48,516 Public safety 401,917 24,584 6,329 - Development 60,348 17,310 6,838 - Health 37,191 5,879 13,211 - Recreation and parks 85,012 11,847 49,764 82 Interest on long-term debt 33,660 - - - Total governmental activities 839,479 129,939 123,855 48,920
Business-type activities: Water 96,381 104,929 - - Sanitary sewer 114,721 130,296 - 129 Storm sewer 22,172 24,271 - - Electric 56,276 58,633 - 1,470 Total business-type activities 289,550 318,129 - 1,599 Total $ 1,129,029 $ 448,068 $ 123,855 $ 50,519
Component units: CUGC 3,616 2,439 404 513 RiverSouth 17,695 - - 2,000 Total component units$ 21,311 $ 2,439 $ 404 $ 2,513
General revenues: Income taxes Shared revenues Property taxes Investment earnings Hotel/Motel taxes Municipal motor vehicle tax Miscellaneous Transfers Total general revenues and transfers Change in net assets Net assets - beginning, as restated (Note S) Net assets - ending
The notes to the financial statements are an integral part of this statement.
60 Exhibit 2
Net (Expense) Revenue and Changes in Net Assets Primary Government Component Units
Governmental Business-type Activities Activities Total CUGC RiverSouth
$ (11,955) $ - $ (11,955) $ - $ - (42,526) - (42,526) - - (371,004) - (371,004) - - (36,200) - (36,200) - - (18,101) - (18,101) - - (23,319) - (23,319) - - (33,660) - (33,660) - - (536,765) - (536,765) - -
- 8,548 8,548 - - - 15,704 15,704 - - - 2,099 2,099 - - - 3,827 3,827 - - - 30,178 30,178 - - (536,765) 30,178 (506,587) - -
(260) - - (15,695) (260) (15,695)
454,999 - 454,999 - - 58,935 - 58,935 - - 45,891 - 45,891 - - 7,288 2,340 9,628 - 150 11,731 - 11,731 - - 3,066 - 3,066 - - 68,296 5,035 73,331 866 6 (2,412) 2,412 - - - 647,794 9,787 657,581 866 156 111,029 39,965 150,994 606 (15,539) 956,886 728,686 1,685,572 678 - $ 1,067,915 $ 768,651 $ 1,836,566 $ 1,284 $ (15,539)
61 City of Columbus, Ohio Exhibit 3 Balance Sheet Governmental Funds December 31, 2004 (amounts expressed in thousands)
General Other Total Bond Special Governmental Governmental General Retirement Income Tax Funds Funds ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 102,889 $ 17 $ 163,888 $ 234,001 $ 500,795 Cash and investments with fiscal and escrow agents and other - - - 7,288 7,288 Investments - 3,113 - 33 3,146 Receivables (net of allowances for uncollectibles) 155,812 114 30,609 21,219 207,754 Due from other: Governments 24,881 - - 25,920 50,801 Funds 7,374 - 36 3 ,349 10,759 Interfund receivable - - 4,418 - 4,418 Total assets$ 290,956 $ 3,244 $ 198,951 $ 291,810 $ 784,961
LIABILITIES Accounts payable 4,530 - 1,727 22,367 28,624 Due to other: Governments 1,033 - - - 1,033 Funds 349 373 171 1 ,501 2,394 Other 7,988 - 2,662 - 10,650 Interfund payables - - - 4 ,418 4,418 Deferred revenue and other 150,700 - 22,185 24,263 197,148 Matured bonds and interest payable - 1,709 - - 1,709 Accrued wages and benefits 22,113 - - 3,976 26,089 Total liabilities 186,713 2,082 26,745 56,525 272,065
FUND BALANCES Reserved for: Encumbrances 10,518 - 39,861 210,735 261,114 Non-current loans receivable - - - 15,595 15,595 Unreserved, reported in: General fund - designated for future years' expenditures 66,753 - - - 66,753 General fund - undesignated 26,972 - - - 26,972 Special revenue funds - - - ( 50,601) (50,601) Debt service funds - 1,162 132,345 19,034 152,541 Capital projects funds - - - 40,522 40,522 Total fund balances 104,243 1,162 172,206 235,285 512,896
Total liabilities and fund balances $ 290,956 $ 3,244 $ 198,951 $ 291,810 $ 784,961
The notes to the financial statements are an integral part of this statement.
62 City of Columbus, Ohio Exhibit 3.1 Reconciliation of the Balance Sheet to the Statement of Net Assets Governmental Funds December 31, 2004 (amounts expressed in thousands) Total fund balances for governmental funds (Exhibit 3) $ 512,896
Total net assets reported for governmental activities in the statement of net assets is different because:
Capital assets used in governmental activities (excluding internal service fund capital assets) are not financial resources and therefore are not reported in the funds. Those assets consist of: Land 204,882 Buildings, net of $106,307 accumulated depreciation 220,751 Improvements other than buildings, net of $50,712 accumulated depreciation 100,709 Machinery and equipment, net of $148,105 accumulated depreciation 53,502 Infrastructure, net of $210,979 accumulated depreciation 810,872 Total capital assets (See Note F) 1,390,716
Bond issuance costs associated with new debt issued by the City in 2004 were reported as expenditures in the governmental fund when the debt was issued, whereas bond issuance costs are deferred in the statement of net assets. Deferred bond issuance costs are amortized, over the life of the debt issued, as an adjustment to interest expense in the statement of activities. 3,474
Internal services funds (see Exhibit 5) are used by the City to account for the financing of goods or services provided by one department or agency to other City departments or agencies, generally on a cost reimbursement basis. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Internal service fund net assets are: 1,709
City income tax revenue related to 2004 (and prior tax years) will be collected beyond the 60 day period used to record revenue in the fund statements. Revenue and a corresponding receivable for this amount are included in the government-wide statements. 54,260 Emergency Medical Services charges related to 2004 (and prior tax years) will be collected beyond the 60 day period used to record revenue in the fund statements. Revenue and a corresponding receivable for this amount are included in the government-wide statements. 7,310
State shared revenue appropriated during the State of Ohio's fiscal year ended June 30, 2004 will be collected by the City in calendar year 2005. Revenue and a corresponding receivable for the amount appropriated but not received by December 31, 2004 are included in the government-wide statements. 40,062
General obligation debt to be paid for by CRAA, a joint venture of the City. The revenue to be collected from CRAA was deferred in the fund statements, but recognized as revenue in the government-wide statements. 8,620
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities - both current and long-term - are reported in the statement of net assets. Also, during the year the City issued new debt. The deferred amount on refunding and premium received on the refunding were reported in the governmental fund when the debt was issued, whereas these amounts are deferred and amortized, over the remaining life of the new debt, as an adjustment to interest expense in the statement of activities. Balances at December 31, 2004 are: Accrued wages and benefits (4,205) Accrued interest on bonds (8,902) Due to other governments (2,500) Accrued vacation and sick leave (56,620) Capital lease (2,870) Bonds and notes payable (850,359) Unamortized deferred amount on refunding 4,306 Unamortized premiums (29,982) Total long-term liabilities (see Note G) (878,905) Total net assets of governmental activities (Exhibit 1) $ 1,067,915 The notes to the financial statements are an integral part of this statement. 63 City of Columbus, Ohio Exhibit 4 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
General Other Total Bond Special Governmental Governmental General Retirement Income Tax Funds Funds REVENUES Income taxes $ 343,982 $ 89,192 $ 25,470 $ 175 $ 458,819 Property taxes 45,891 - - - 45,891 Grants and subsidies - - - 110,909 110,909 Investment income 6,754 65 - 469 7,288 Special assessments - 64 - - 64 Licenses and permits 2,090 - - 22,930 25,020 Shared revenues 55,924 - - 27,414 83,338 Charges for services 37,632 - - 28,277 65,909 Fines and forfeits 17,751 - - 4,631 22,382 Miscellaneous 71,055 - 6,021 31,481 108,557 Total revenues 581,079 89,321 31,491 226,286 928,177
EXPENDITURES Current: General government 59,769 195 117 21,451 81,532 Public service 46,393 - 1,080 48,352 95,825 Public safety 379,067 - - 6,660 385,727 Development 15,600 - - 42,565 58,165 Health - - - 36,640 36,640 Recreation and parks - - 119 77,331 77,450 Capital outlay 2,516 - - 125,325 127,841 Debt service: Principal retirement and payment of obligation under capitalized lease - 79,763 1,156 - 80,919 Interest and fiscal charges - 33,947 539 - 34,486 Total expenditures 503,345 113,905 3,011 358,324 978,585 Excess(deficiency) of revenues over expenditures 77,734 (24,584) 28,480 (132,038) (50,408)
OTHER FINANCING SOURCES (USES) Transfers in 13,055 24,420 11,451 76,642 125,568 Transfers out (39,676) - (35,793) ( 52,511) (127,980) Proceeds from bonds and long-term notes issued - - - 210,208 210,208 Refunding bonds issued - - 6,840 31,620 38,460 Payment to refunded bond escrow agent - - - ( 32,470) (32,470) Redemption of refunded bonds - - (6,840) (2,100) (8,940) Premium on bond issuance - - 16,819 624 17,443 Capital lease - - - 2,000 2,000 Total other financing sources (uses) (26,621) 24,420 (7,523) 234,013 224,289 Net change in fund balance 51,113 (164) 20,957 101,975 173,881 Fund balances—beginning of year 53,130 1,326 151,249 133,310 339,015 Fund balances—end of year $ 104,243 $ 1,162 $ 172,206 $ 235,285 $ 512,896
The notes to the financial statements are an integral part of this statement.
64 City of Columbus, Ohio Exhibit 4.1 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Net change in fund balances - total governmental funds (Exhibit 4) $ 173,881
Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets, which meet capitalization requirements, is allocated over their estimated useful lives and reported as depreciation expense. This amount includes the adjustment for capital outlay expenditures capitalized ($120,780 of total capital outlay of $127,841 met the capitalization requirements) offset by depreciation expense ($49,302) and loss on disposal of assets ($2,908) in the current period. The City had donated infrastructure of $23,122 in 2004 which is not reported in the governmental funds. 91,692
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. The amount is the net effect of the reversal of prior year items against current year accruals. 6,001
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of premiums and deferred amount on refundings when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The amount is the net effect of these differences in the treatment of long-term debt and related items. (146,515)
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (5,995)
Net loss of certain activities of internal service funds are reported with governmental activities. (8,035)
Changes in net assets of governmental activities (Exhibit 2) $ 111,029
The notes to the financial statements are an integral part of this statement.
65 City of Columbus, Ohio Exhibit 5 Statement of Net Assets Proprietary Funds December 31, 2004 (amounts expressed in thousands)
Governmental Business-type Activities - Enterprise Funds Activities - Sanitary Storm Internal Water Sewer Sewer Electricity Total Service Funds ASSETS Current assets: Cash and cash equivalents with treasurer$ 37,404 $ 52,311 $ 7,342 $ 773 $ 97,830 10,664 Receivables (net of allowance for uncollectibles) 19,107 23,685 4,992 7,557 55,341 1,002 Due from other funds 598 616 212 537 1,963 928 Inventory 6,204 6,496 - 775 13,475 684 Restricted assets: Cash and cash equivalents with treasurer and other 58,711 15,848 45,418 15,070 135,047 - Cash and cash equivalents with trustees 1,826 7,103 - - 8,929 - Accrued interest receivable - 7 - - 7 - Total current assets 123,850 106,066 57,964 24,712 312,592 13,278 Noncurrent assets: Deferred charges and other 669 821 133 37 1,660 - Capital Assets: Land and construction in progress 29,869 111,139 7,446 1,954 150,408 13 Other capital assets, net of accumulated depreciation 319,396 945,965 79,194 75,344 1,419,899 6,663 Total noncurrent assets 349,934 1,057,925 86,773 77,335 1,571,967 6,676 Total assets 473,784 1,163,991 144,737 102,047 1,884,559 19,954 LIABILITIES Current liabilities: Accounts payable 2,570 4,573 45 3,386 10,574 4,001 Customer deposits - - - 370 370 - Due to other: Governments - - 43 21 64 - Funds 48 44 37 71 200 59 Others - 4 - 73 77 - Payable from restricted assets: Accounts payable 1,549 2,754 554 593 5,450 - Due to other funds 10 - 24 4 38 - Due to others - 25 - 9 34 - Accrued interest payable 326 6,848 - - 7,174 - Deferred revenue and other - 147 - 1,256 1,403 - Accrued interest payable 2,748 3,534 1,188 497 7,967 69 Accrued wages and benefits 1,307 1,234 91 399 3,031 5,772 Accrued vacation and sick leave 1,891 1,754 109 612 4,366 1,111 Current portion of: - Bonds and loans payable 25,504 44,126 4,650 6,154 80,434 645 Total current liabilities 35,953 65,043 6,741 13,445 121,182 11,657
Noncurrent liabilities: Bonds and loans payable, net 255,663 611,939 93,414 35,134 996,150 5,164 Total noncurrent liabilities 255,663 611,939 93,414 35,134 996,150 5,164 Total liabilities 291,616 676,982 100,155 48,579 1,117,332 16,821
NET ASSETS Invested in capital assets, net of related debt 125,250 414,115 33,416 50,474 623,255 867 Restricted for debt service 1,500 255 - - 1,755 - Unrestricted 55,418 72,639 11,166 2,994 142,217 2,266 Total net assets $ 182,168 $ 487,009 $ 44,582 $ 53,468 767,227 $ 3,133
Adjustment to consolidate the internal service fund activities. 1,424 Total net assets per the government-wide Statement of Net Assets $ 768,651 The notes to the financial statements are an integral part of this statement.
66 CITY OF COLUMBUS, OHIO Exhibit 6 Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Governmental Business-type Activities - Enterprise Funds Activities - Sanitary Internal Water Sewer Storm Sewer Electricity Total Service Funds Operating revenue: Charges for service$ 104,929 $ 130,296 $ 24,271 $ 58,633 $ 318,129 $ 98,501 Other 1,565 2,433 266 2,145 6,409 1,137 Total operating revenue 106,494 132,729 24,537 60,778 324,538 99,638
Operating expenses: Personal services 35,066 27,784 8,675 8,976 80,501 18,357 Materials and supplies 12,263 4,805 331 612 18,011 12,277 Contractual services 20,059 33,695 7,015 5,381 66,150 77,547 Purchased power - - - 36,331 36,331 - Depreciation 15,601 28,884 2,164 3,255 49,904 1,589 Other 403 1,494 76 201 2,174 - Total operating expense 83,392 96,662 18,261 54,756 253,071 109,770 Operating income 23,102 36,067 6,276 6,022 71,467 (10,132)
Nonoperating revenue (expenses): Investment income 1,038 681 473 148 2,340 - Interest expense (12,343) (17,524) (3,866) ( 1,380) ( 35,113) (222) Other, net 528 108 2 (413) 225 953 Total nonoperating revenue (expenses) (10,777) (16,735) (3,391) (1,645) (32,548) 731 Income before transfers 12,325 19,332 2,885 4,377 38,919 (9,401)
Transfers in - 7 2,407 100 2,514 2 Transfers out - - - (102) (102) (2) Change in net assets 12,325 19,339 5,292 4,375 41,331 (9,401) Total net assets - beginning, as restated (Note S) 169,843 467,670 39,290 49,093 12,534 Total net assets - ending $ 182,168 $ 487,009 $ 44,582 $ 53,468 $ 3,133
Adjustment to consolidate the internal service fund activities. (1,366) Total change in net assets of business-type activities $ 39,965
The notes to the financial statements are an integral part of this statement.
67 City of Columbus, Ohio Exhibit 7 Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Governmental Business-type Activities - Enterprise Funds Activities - Sanitary Internal Service Water Sewer Storm Sewer Electricity Total Funds Operating activities: Cash received from customers$ 101,616 $ 130,005 $ 23,133 $ 58,282 $ 313,036 $ 98,027 Cash paid to employees (34,979) (34,224) (2,219) (9,223) (80,645) (18,242) Cash paid to suppliers (31,233) (41,023) (13,686) (42,333) (128,275) (90,121) Other receipts 3,623 8,142 2,464 2,786 17,015 286 Other payments (110) (566) (131) (1,243) (2,050) –
Net cash provided by operating activities 38,917 62,334 9,561 8,269 119,081 (10,050)
Noncapital financing activities: Transfers in – 7 2,407 100 2,514 2 Transfers out – – – (102) (102) (2)
Net cash provided by (used in) noncapital financing activities – 7 2,407 (2) 2,412 –
Capital and related financing activities: Proceeds from sale of assets 528 108 – 18 654 – Purchases of property, plant and equipment (11,721) (90,923) (10,424) (5,193) (118,261) (145) Proceeds from issuance of bonds, loans and notes 32,240 101,322 38,555 18,631 190,748 2,730 Principal payments on bonds and loans (25,392) (46,572) (9,911) (7,304) (89,179) (765) Interest and fiscal charges paid on bonds, loans and notes (11,935) (25,267) (2,990) (1,055) (41,247) (166)
Net cash used in capital and related financing activities (16,280) (61,332) 15,230 5,097 (57,285) 1,654
Investing activities: Interest received on investments (118) 430 333 48 693 –
Net cash provided by investing activities (118) 430 333 48 693 –
Increase (decrease) in cash and cash equivalents 22,519 1,439 27,531 13,412 64,901 (8,396)
Cash and cash equivalents at beginning of year (including $72,309 in total restricted accounts) 75,422 73,823 25,229 2,431 176,905 19,060
Cash and cash equivalents at end of year (including $143,976 in total restricted accounts) $ 97,941 $ 75,262 $ 52,760 $ 15,843 $ 241,806 $ 10,664
(Continued)
68 City of Columbus, Ohio Exhibit 7 (Continued) Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Governmental Business-type Activities - Enterprise Funds Activities - Sanitary Internal Water Sewer Storm Sewer Electricity Total Service Funds
Operating income $ 23,102 $ 36,067 $ 6,276 $ 6,022 $ 71,467 $ (10,132) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 15,601 28,884 2,164 3,255 49,904 1,589 Amortization, net 2,486 1,965 2,290 1,326 8,067 197 Decrease (increase) in operating assets and increase (decrease) in operating liabilities: Receivables (3,747) (3,804) (1,140) (1,462) (10,153) (969) Due from other funds 98 (345) (18) (110) (375) (720) Inventory 878 272 – (36) 1,114 239 Accounts payable - net of items affecting property, plant, and equipment 194 (239) (102) 195 48 (36) Customer deposits – – – 18 18 – Due to other funds 32 (537) 61 (22) (466) 59 Deferred revenue – (127) – (998) (1,125) – Accrued wages and benefits 243 227 19 101 590 (395) Accrued vacation and sick leave 30 (29) 11 (20) (8) 118
Net cash provided by operating activities$ 38,917 $ 62,334 $ 9,561 $ 8,269 $ 119,081 $ (10,050)
Supplemental information: Noncash activities: Change in fair value of investments$ 383 $ 280 $ 198 $ 57 $ 918 $ - OWDA loan increase for capitalized interest$ - $ 605 $ - $ - $ 605 $ -
The notes to the financial statements are an integral part of this statement.
69 City of Columbus, Ohio Exhibit 8 Statement of Fiduciary Assets and Liabilities Fiduciary Funds December 31, 2004 (amounts expressed in thousands)
Agency Funds ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 68,313 Cash and investments with trustee 79 Investments 21 Due from other funds 6 Receivables (net of allowances for uncollectibles) 3 Total assets 68,422
LIABILITIES Due to: Other Governments$ 46,044 Other Funds 10,965 Other 11,413 Total liabilities 68,422 NET ASSETS $ -
The notes to the financial statements are an integral part of this statement.
70
NOTES TO THE FINANCIAL STATEMENTS
71 CITY OF COLUMBUS, OHIO
Notes to the Financial Statements
December 31, 2004
NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Columbus (the City) was organized on March 3, 1834 and is a home–rule, municipal corporation under the laws of the State of Ohio. The City operates under the Council–Mayor form of government.
The accompanying financial statements comply with the provisions of Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, and Statement No. 39, Determining Whether Certain Organizations Are Component Units, in that the financial statements include all the organizations, activities, functions, and component units for which the City (the reporting entity) is financially accountable. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (1) the City’s ability to impose its will over the component unit, or (2) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the City. On this basis, the reporting entity of the City includes the following services as authorized by its charter: public service, public safety, development, health, and recreation and parks. In addition, the City owns and operates four enterprise activities: a water system, a sanitary sewer system, a storm sewer system, and an electricity distribution system. The reporting entity also includes three joint ventures and two component units.
Joint Ventures:
• In August 1990, the City’s Council created the Columbus Municipal Airport Authority (CMAA), as permitted by State law, to manage the City’s two airports. CMAA became operational in November 1991. Although CMAA was a separate legal entity, the City discretely presented the financial statements of CMAA pursuant to GASB Statement No. 14 as a part of the reporting entity through December 31, 2002. On December 12, 2002 the City of Columbus, Ohio, the Columbus Municipal Airport Authority, and the County of Franklin, Ohio entered into the Port Authority Consolidation and Joinder Agreement. The effective date of the agreement was January 1, 2003. The agreement unites the operations of Columbus Municipal Airport Authority, created by the City in 1990, and the Rickenbacker Port Authority, created by the County in 1979 and dissolved by the County Commissioners via this action. The new entity is titled the Columbus Regional Airport Authority (CRAA). The board of directors of the CRAA is its governing body and consists of nine (9) members; four (4) appointed by the Mayor of the City of Columbus, four (4) by the County Commissioners of Franklin County and one (1) jointly by the Mayor and the County Commissioners. Beginning January 1, 2003 the CRAA was characterized as a Joint Venture of the City and the County. CRAA’s financial activity is reported in Note Q contained in this report. Complete financial statements of CRAA may be obtained from CRAA’s administration offices at 4600 International Gateway, Columbus, Ohio 43219 or at www.columbusairports.com.
• The Franklin Park Conservatory Joint Recreation District (the Conservatory District) was created by the City (Resolution 109X-90) and Franklin County (Resolution 79-90) in 1990 pursuant to authority contained in Section 755.14(B) of the Ohio Revised Code (ORC). The agreement between the City and the County that created the Conservatory District in 1990 was amended by the City (Ordinance 1794-96) and the County (Resolution 800-96) in August 1996. The amendment increased the number of members of the Board of the Conservatory District from 10 to 17. Eight members of the Board are appointed by the Mayor of the City subject to confirmation by the City’s Council and six members are appointed by the County. In addition, the Governor, the Speaker of the House of Representatives and the President of the Senate of the State of Ohio each appoint one member to the Board pursuant to the authority contained in Section 755.14(B)(2) of the ORC. State appointed 72 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
members are nonvoting members if they also serve as members of the Ohio General Assembly; no member presently serves in both roles. The Mayor of the City, therefore, does not appoint a voting majority of the Board.
The City contributed certain fixed assets to the Conservatory District at the time of its inception and has agreed to an annual operating subsidy, but subject to annual appropriation by the City’s Council. Revenues, the operating subsidy, received by the Conservatory District in 2004 from the City were $452,693; 9% of its total revenue and support. The City has authorized an operating subsidy of $452,693 to the Conservatory District for 2005. In the event of the Conservatory District’s liquidation, its assets will be transferred to the City.
Because the City’s Mayor does not appoint a voting majority of the Conservatory District’s Board and multiple governments participate in the board appointment process, the City accounts for and reports the financial activity of the Conservatory District as a joint venture pursuant to GASB Statements No. 14 and 39. The Conservatory District’s financial activity is reported in Note Q contained in this report. Complete financial statements may be obtained from the Conservatory District at 1777 East Broad Street, Columbus, Ohio 43203.
• The Columbus/Franklin County Affordable Housing Trust Corporation (AHT) was initially created as the Columbus Housing Trust Corporation, with Articles of Incorporation (Articles) filed with the Ohio Secretary of State on August 31, 2000. Amended Articles were then filed for AHT in May 2001. No single government or government official appoints a majority of the Board members. All are jointly appointed. In 2004 the City provided cash assistance to AHT of $988,966. The County provided cash assistance of $1.0 million. AHT’s total support and revenue in 2004 was $2.234 million. The City is committed through its legislation to provide a portion of its hotel-motel tax collections to AHT each year into the future. This commitment approximates $1.0 million per year.
Since the Mayor does not singularly appoint a voting majority of AHT’s board of trustees and multiple governments participate in both the board appointment process and the financial support of AHT, the City accounts for and reports the financial activity of AHT as a joint venture pursuant to GASB Statements No. 14 and 39. AHT’s financial activity is reported in Note Q contained in this report. Complete financial statements of AHT may be obtained from Columbus/Franklin County Affordable Housing Trust Corporation, 415 East Mound Street, Columbus, OH 43215.
Component units:
• Columbus Urban Growth Corporation (CUGC) was incorporated in 1996 as an Ohio not-for-profit corporation and, as stated in Notes to its consolidated financial statements for the year ended June 30, 2004, was organized for the purpose of promoting commercial and industrial development and creating investment and job opportunities in Columbus inner city and economically depressed neighborhoods. In accordance with its missions, CUGC has established the entities of Community Urban Redevelopment Corporation, Neighborhood Acquisition Corporation, Crosstown, LLC and 268 Management Company. The consolidated financial statements include all the above entities. All material accounts and transactions among the consolidated entities have been eliminated.
Management of CUGC consists of a 15 member Board of Trustees, 10 of whom are appointed by the City (5 by the Mayor and 5 by the President of City Council). CUGC receives a significant portion of its funding from the City and at June 30, 2004 had $4.480 million of notes payable to the City. The City leases significant amounts of property to CUGC. See Note I – Property Leased to Others. Because the City appoints a majority of the Board of Trustee members of CUGC and because of CUGC’s financial dependency on the City, a component unit relationship is deemed to exist. See Note R – Component Units – for additional disclosures regarding CUGC.
73 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
• The RiverSouth Authority (RiverSouth) came into existence in 2004 as a result of the following statutes. The Columbus City Council, via ordinance no. 2446-03, approved on November 19, 2003, authorized the City Clerk to initiate the process to create The RiverSouth Authority, a new community authority as provided for under Ohio Revised Code (ORC) Chapter 349. The City Council continued the process by establishing the time and place for a public hearing on the matter via Ordinance No. 451-04 approved on March 17, 2004. The public hearing was held at 5:00 p.m. on Monday, April 19, 2004 in City Council Chambers. The Council, via Ordinance No. 1007-04, approved June 23, 2004, created “The RiverSouth Authority” as a body politic and corporate.
The Board of Trustees of the Authority, pursuant to the creating Ordinance 1007-04, consists of nine members. The City appoints five members including one local government representative. The Developer, The Columbus Downtown Development Corporation, a private entity, appoints the remaining four members. RiverSouth encompasses several square blocks in the core of Columbus’ downtown, and, as indicated in the background of the ordinance, all to be developed and redeveloped for the conduct of commercial, residential, cultural, educational and recreational activities.
Certain inter-dependent transactions occurred in 2004 pursuant to the following. Ordinance No. 1009-2004, approved by Council on June 23, 2004, authorized the City’s Director of Development to execute a lease agreement and first supplemental lease agreement with RiverSouth whereby the City leased certain land, approximately 1.621 acres, from RiverSouth and recognized certain projects and costs to be undertaken by RiverSouth. On June 29, 2004 RiverSouth then proceeded to issue $37,870,000 of RiverSouth Area Redevelopment Bonds, 2004 Series A (the Bonds). Rental payments from the City to RiverSouth due as a result of the lease and first supplemental lease agreements are to equate to the debt service requirements on the Bonds beginning December 1, 2007 in the total amount of $58.9 million. These rental payments are subject to annual appropriations of City Council. Payments are scheduled to begin in 2007. See Note J for additional details regarding this lease agreement.
The Official Statement, dated June 24, 2004, issued in conjunction with the Bonds states in part “…The Authority and City entered into the Master Lease Agreement dated June 1, 2004 (the “Lease”) under which the Authority has agreed to issue obligations to finance redevelopment activities as authorized by the Columbus City Council, and to lease to the City certain land consisting of approximately 1.621 acres (the “Project Land”) located in the RiverSouth area in downtown Columbus. The City’s lease interest in the Project Land will include the underlying land interest in the Project Land but does not include improvements made on the Project Land whether or not such improvements are financed by Bonds issued by the Authority. Upon the expiration of the lease term, all right, title and interest in the Project Land will be transferred to the City. In connection with each series of Bonds issued by the Authority, the City and the Authority will enter into a supplemental lease agreement. The supplemental lease agreement will identify the capital facilities to be financed with the related series of Bonds and will provide for the applicable rentals. The Authority and City have also entered into the First Supplemental Lease dated June 1, 2004 (the “First Supplemental Lease”) in connection with the issuance of the 2004 Series A Bonds. . .”
The 1.621 acres leased to the City represents a portion of a larger land area. The leased land is accounted for by the City in the amount of $2.0 million. This amount is included in the Entity Wide Statement of Net Assets as Governmental Activities Land and Construction in Progress and long term portion of Capital leases liabilities and in the non major governmental-capital projects-funds (the Downtown Development fund) as Other Financing Sources and Capital Outlay.
Because the City appoints a majority of the Board of Trustee members of RiverSouth and because of RiverSouth’s financial dependency on the City, a component unit relationship is deemed to exist. See Note R – Component Units – for additional disclosures regarding RiverSouth.
74 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The accounting policies and financial reporting practices of the City conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. Beginning January 1, 2001, the City changed its financial reporting to comply with GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments. For fiscal year 2003, the City implemented GASB Statement No. 40, Deposits and Investment Risk Disclosures. In November 2003, the GASB issued Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. The City has determined that GASB Statement No. 42 has no impact on its financial statements as of December 31, 2004.
The following is a summary of the City’s significant accounting policies:
(a) Government-wide and fund financial statements
Financial information of the City is presented in this report as follows.
• Management’s discussion and analysis introduces the basic financial statements and provides an analytical overview of the City’s financial activities. • Basic financial statements: • Government-wide financial statements consist of a statement of net assets and a statement of activities. These statements report all of the assets, liabilities, revenues, expenses,, and gains and losses of the City. Governmental activities are reported separately from business type activities. Governmental activities are normally supported by taxes and intergovernmental revenues whereas business type activities are normally supported by fees and charges for services and are usually intended by management to be financially self-sustaining. Fiduciary funds of the City are not included in these government-wide financial statements; however, separate financial statements are presented for the Fiduciary funds.
Interfund receivables and payables between governmental and business type activities have been eliminated in the Government-wide Statement of Net Assets. These eliminations minimize the duplicating effect on assets and liabilities within the governmental and business type activities total column.
Internal service fund balances, whether positive or negative, have been eliminated against the expenses and program revenues shown in governmental activities Statement of Activities.
The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the City and for each function of the City’s governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
• Fund financial statements consist of a series of statements focusing on information about the City’s major governmental and enterprise funds. Separate financial statements are presented for the governmental, proprietary, and fiduciary funds. The City’s major governmental funds are the General fund, the General Bond Retirement debt service fund, and the Special Income Tax debt service fund. Of the City’s business 75 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
type activities its Water, Sanitary Sewer, and Electricity enterprise funds are considered major funds.
The General fund is the accounting entity in which all governmental activity, except that which is required to be accounted for in other funds, is accounted for. Its revenues consist primarily of taxes, investment income, licenses and permits, intergovernmental shared revenue, charges for services, fines, and others.
General fund expenditures represent costs of general government; public service, including garbage collection and facilities management; public safety, including fire, police, and communications; certain development costs, and other. Resources of the General fund are also transferred annually to support services such as public recreation and public health, which are accounted for in separate special revenue funds.
The General Bond Retirement and the Special Income Tax debt service funds are accounting entities in which the City accounts for the accumulation of resources for and the payment of general obligation debt; principal, interest, and related expenditures. Revenues consist primarily of a portion of the City’s income tax.
The Water enterprise fund, a major fund, is the accounting entity in which the City accounts for all financial activity related thereto. The City collects, purifies, and sells water to city residents and certain suburban areas. Water is collected from surface areas (rivers) and wells. The City has three water treatment plants. Revenues consist primarily of user charges.
The Sanitary Sewer enterprise fund, a major fund, is the accounting entity in which the City accounts for all financial activity related thereto. The City collects and treats effluent of City residents and residents of certain suburban areas. The City has two sewerage treatment plants. Revenues consist primarily of user charges.
The Storm Sewer enterprise fund, a nonmajor fund, is the accounting entity in which the City accounts for all financial activity related thereto. Prior to 2002 storm sewer financial activities were accounted for in a special revenue fund and various capital project funds. Revenues consist primarily of user charges.
The Electricity enterprise fund, a major fund, is the accounting entity in which the City accounts for all the financial activity related thereto. The City purchases, but does not generate, and sells electricity to its 13,562 customers, both residential and commercial. Revenues consist primarily of user charges.
The City maintains various nonmajor internal service funds which are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government, generally on a cost reimbursement basis. The largest of these funds account for fleet management services and electronic information services.
Also maintained by the City are fiduciary funds such as agency funds used to account for assets held by the government as an agent for individuals, private organizations, other governments, and/or other funds.
• Notes to the financial statements providing information that is essential to a user’s understanding of the basic financial statements.
• Required supplementary information such as budgetary comparison schedules as required by GASB. 76 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b) Financial reporting presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures (expenses). Fund types are as follows:
GOVERNMENTAL FUNDS
General Fund—The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds—Special Revenue Funds are used to account for revenues derived from specific taxes, grants or other restricted revenue sources. The uses and limitations of each special revenue fund are specified by City ordinances or federal and state statutes.
Debt Service Funds—Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs.
Capital Projects Funds—Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds).
Permanent Funds—Permanent funds are for the purpose of accounting for resources that are legally restricted to the extent that earnings, and not principal, may be used for purposes that support the reporting government’s programs. The City, however, does not utilize Permanent funds.
PROPRIETARY FUNDS
Enterprise Funds—Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises—where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The City has separate enterprise funds for its water, sanitary sewer, storm sewer, and electricity services.
Internal Service Funds—Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, generally on a cost-reimbursement basis.
FIDUCIARY FUNDS
Agency Funds—Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds. Assets held for other funds or governments include payroll taxes and other employee withholdings (which are combined into one agency fund for ease of payment), income taxes, and utility charges collected by the City on behalf of other governments. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
Other Fiduciary funds; which, however, the City does not utilize are Pension trust funds used to account for resources that are required to be held in trust for the respective members or beneficiaries; Investment trust funds used to report the external portion of investment pools 77 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
reported by the sponsoring government as required by GASB No. 31 and Private-purpose trust funds used to account for other trust arrangements which benefit individuals, private organizations or other governments.
(c) Measurement focus and bases of accounting
Except for budgetary purposes, the bases of accounting used by the City conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
The government-wide and the proprietary fund financial statements are reported using the economic resources measurement focus. The government-wide, proprietary, and fiduciary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include income taxes, property taxes, grants, shared revenue (unrestricted, intergovernmental revenue) and donations. On an accrual basis, revenue from income taxes is recognized in the period in which the taxpayer’s liability occurs and revenue from property taxes is recognized in the fiscal year for which the taxes are levied. On an accrual basis, revenue in the form of shared revenue is recognized when the provider government recognizes its liability to the City. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt are reported as other financing sources.
Pursuant to GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, the City follows GASB guidance as applicable to its governmental and business-type activities, and Financial Accounting Standards Boards (FASB) Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins issued on or before November 30, 1989 that do not conflict with or contradict GASB Pronouncements. The City has elected to follow GASB guidance for business-type activities and enterprise funds rather than FASB guidance issued after November 30, 1989.
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
(d) Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed in all funds. On the GAAP basis of accounting, encumbrances do not constitute expenditures or liabilities, but are reported as reservations of fund balances in governmental funds.
78 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e) Cash Equivalents
For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments held by trustees, with an original maturity of three months or less when purchased, to be cash equivalents. In addition, all cash and investments with treasurer are also considered to be cash equivalents because they are available to the Proprietary Funds on demand.
(f) Investments
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, the City records all of its investments at fair value as defined in the statement.
The City does not engage in any form of derivatives or reverse repurchase agreements in the management of its investment portfolio. Only eligible investments with final maturities not greater than two years from time of purchase are permitted. The City’s cash and investments are further explained in Note C.
(g) Inventory
Inventory is valued at cost utilizing the first-in, first-out method for enterprise funds and the average cost method for internal service funds. Items considered as inventory in the enterprise funds and internal service funds are accounted for as expenditures when acquired by governmental funds.
(h) Capital Assets
Capital assets, which include property, plant, and equipment, and infrastructure (e.g. roads, curbs and gutters, streets and sidewalks, and drainage systems) are reported in the applicable governmental or business-type activity columns in the government-wide financial statements. The City defines capital assets as assets with an individual cost of more than $5,000 and an estimated useful life in excess of five years. Such assets are recorded at historical cost or estimated historical cost (for certain assets acquired prior to 1960). Pursuant to the implementation of GASB Statement No. 34, the historical cost of infrastructure assets (retroactive to January 1, 1979) are included as part of the governmental capital assets reported in the government-wide statements. Donated assets are recorded at estimated fair market value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
79 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Property, plant, and equipment is depreciated using the straight line method over the following estimated useful lives:
Estimated Description Lives (years)
Autos and information processing equipment 5 Trucks 8 Equipment, furniture, and fixtures 10 Heavy rescue equipment 25 Buildings, infrastructure, water lines, and fire hydrants 40 Sewer mains and certain water assets 75-100 (i) Pensions
Pursuant to the modified accrual basis of accounting, governmental funds record the provision for pension cost when the obligation is incurred and will be liquidated with available and measurable resources. Pension cost for proprietary fund types is recorded when incurred (see Note K).
(j) Insurance
The City assumes the liability for most property damage and personal injury risks. Judgments and claims, including those incurred but not reported as of year-end, are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The City insures certain of its major buildings. The policy has a $100,000 deductible. No losses occurred in 2001, 2003, or 2004 that exceeded insurance coverage. A fire occurred in January 2002 in which the City sustained a loss of approximately $100,000.
The City’s division of Police operates a fleet of six jet-powered helicopters. These helicopters (models M/D 500E), valued at approximately $1,000,000 each, are insured for both hull insurance ($1,000,000 per helicopter with $100,000 deductible) and liability insurance ($10,000,000 per occurrence; $1,000,000 per passenger; no deductible). No accidents or losses occurred in 2002, 2003, or 2004.
Additionally, the City provides medical, dental, vision, and short-term disability coverage for its employees on a self-insurance basis. Expenses for claims are recorded on a current basis based on an actuarially determined charge per employee. The City accounts for such activity in an Internal Service Fund in accordance with GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues.
A summary of changes in self-insurance claims liability follows:
(in thousands) 2004 2003 2002 2001 2000 Claims liability at January 1 $ 5,500 6,500 5,000 5,000 5,800 Incurred claims, net of favorable settlements 67,488 60,146 55,817 48,328 47,101 Claims paid (67,988) (61,146) (54,317) (48,328) (47,901) Claims liability at December 31 $ 5,000 5,500 6,500 5,000 5,000
Claims are accrued based upon estimates of the claims liabilities made by management and the third- party administrator of the City. These estimates are based on past experience and current claims outstanding. Actual claims experience may differ from the estimate. An actuary was used in the determination of the current liability. This claims liability is recorded in the Internal Service Fund as accrued wages and benefits.
80 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k) Vacation and Sick Leave
City employees are granted vacation and sick leave in varying amounts. In the event of termination, an employee is reimbursed for accumulated vacation and sick leave at various rates.
Vacation and sick leave accumulated by governmental fund type and proprietary fund type employees is reported as an expense when earned in the government-wide financial statements. Vacation and sick leave accumulated by governmental fund type employees is not reported as an expenditure in the governmental fund financial statements, as current financial resources are not used.
Payment of vacation and sick leave is dependent upon many factors; therefore, timing of future payments is not readily determinable. However, management believes that sufficient resources will be made available for the payment of vacation and sick leave when such payments become due.
(l) Debt Issuance Costs, Premiums, Discounts, and Accounting Losses (Refundings)
Bond premiums and discounts, as well as issuance costs and accounting losses on refundings, are deferred and amortized over the life of the bonds.
(m) Interfund Transactions
The City has the following types of transactions among funds:
1) Reciprocal interfund loans: Amounts provided by one fund to another with a requirement for repayment.
2) Reciprocal interfund services provided and used: Purchases and sales of goods and services between funds for a price approximating their external exchange value.
3) Nonreciprocal interfund transfers: Flows of assets between funds without equivalent flows of assets in return and without a requirement for repayment. This includes payments in lieu of taxes that are not payments for, and are not reasonably equivalent in value to, services provided.
4) Nonreciprocal interfund reimbursements: Repayments from the funds responsible for particular expenditures or expenses to the funds that initially paid for them. The City’s interfund receivables and payables at December 31, 2004 are presented in Note E. Transfers are presented in Note P.
(n) Pursuant to local statute and determined by an internal cost allocation plan, certain costs initially borne by the General Fund are then billed as direct charges to other funds of the City. Revenues from these charges are accounted for in the government-wide Statement of Activities as general government and in the governmental funds Statement of Revenue, Expenditures, and Changes in Fund Balances General Fund as charges for services. The corresponding expenses appear as function/program costs in the Statement of Activities.
(o) The City, in its proprietary funds, accounts for all recurring type revenues, including all revenues which the City controls through statutory pricing or regulatory authority, as operating revenues and all recurring type expense as operating expenses. Non-recurring revenues such as gains on sales of assets and revenues over which the City has minimal or no control, primarily interest earnings, are accounted for as nonoperating revenues. Interest expense and other non-recurring expenses over which the City has minimal or no control are reported as non-operating expense.
(p) The City complies with all restrictions governing the use of restricted assets. Such restrictions do not offer discretion regarding use of these resources in an unrestricted manner. Where capital funds,
81 NOTE A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
usually bond proceeds, are available capital assets are acquired from such resources. Capital assets can be, however, and to a lesser amount are, acquired from unrestricted resources.
(q) Restricted Net Assets
At December 31, 2004, $28.723 million of the City’s $276.223 million in governmental activities restricted net assets on the Statement of Net Assets were restricted by enabling legislation, as defined by GASB Statement No. 46, Net Assets Restricted by Enabling Legislation.
NOTE B—COMMITMENTS AND CONTINGENCIES
(a) Litigation
The City is a defendant in a number of lawsuits pertaining to matters that are incidental to performing routine governmental and other functions. As of December 31, 2004, claims approximating $284.72 million were outstanding against the City. Based on the current status of all these legal proceedings, it is the opinion of management that ultimate resolution of such will not have a material effect on the City’s financial statements.
(b) Federal Grants
Under the terms of federal grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor agencies. While questioned costs may occur, ultimate repayments required of the City have been infrequent in prior years.
(c) Franklin County Convention Facilities Authority (CFA)
The CFA is a separate and distinct entity created under the laws of Ohio. In June 1990, the CFA issued lease revenue bonds for the purpose of constructing a convention facility in downtown Columbus. Also in June 1990, the City and the County of Franklin, Ohio (the County) entered into a lease/sublease arrangement with the CFA pursuant to which the City and the County leased the convention facility as tenants in common from the CFA. The City and the County subleased the facility back to the CFA. The lease requires that the City and the County each pay rent to the CFA in an amount equal to one half of the debt service on the revenue bonds. Under the sublease, the CFA is required to pay rent to the County and the City in an amount equal to such debt service. Such sub rental payments are expected to be derived from the hotel/motel excise tax levied by the CFA, and if such tax is insufficient, from earnings on, and the principal amount of, certain reserve funds created in connection with the issuance of the revenue bonds. If the foregoing amounts are insufficient, the City agreed in the lease to apply that portion of the hotel/motel tax levied by the City and currently paid by the City to a convention and visitors bureau to the payment of rentals under the lease. If, after the application of the foregoing amounts, additional amounts are required to meet the City’s and the County’s obligations under the lease, such amounts will be paid by the City and the County, in equal shares, from their general resources, provided that their respective legislative bodies have appropriated funds for such purpose. No such payments were necessary prior to or during 2004. The lease will terminate as to the City and the County if their respective legislative bodies fail to appropriate amounts required for rentals thereunder. The total amount of these revenue bonds outstanding at December 31, 2004 was $150.9 million net of premiums and discounts of $6.9 million, or a gross amount of $157.8 million.
82 NOTE B—COMMITMENTS AND CONTINGENCIES (CONTINUED)
(d) Other liabilities
At December 31, 2004, the City had certain other liabilities of Governmental Type Activities that will not be paid from funds available, as defined. The City wishes to fully disclose these liabilities. In accordance with GASB Interpretation No. 6; Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements, however, these liabilities are not accounted for, nor are they required to be, in the Fund financial statements contained in this report. Those liabilities are:
(1) Accrued pension in the amount of $4.2 million represents the employer’s share of certain pension costs. This amount is due and payable in March 2005 and is budgeted in 2005 appropriations. This amount, therefore, is not payable from 2004 available funds.
(2) Accrued vacation and sick leave are granted to City employees at varying amounts. At the time of the employee’s termination, such accruals are paid to the employee at varying rates from the fund to which the employee’s payroll is charged. Except for the unused portion of an employee’s prior year’s sick leave accrual which is recorded in the fund that ultimately disburses this accrual to the employee after year end, all other accrued vacation and sick leave applicable to governmental type activities is not reflected in the fund financial statements contained in this report. The long term liability activity related to compensated absences for the year ended December 31, 2004, was as follows:
Amount payable Beginning Ending within one Balance Additions Reductions Balance year (in thousands) Governmental Activities $ 55,125 42,196 39,590 $ 57,731 $ 39,500 Business Type Activities 4,374 5,949 5,957 4,366 4,366
NOTE C—CASH AND INVESTMENTS
Investment Policies: The City follows GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, and records all its investments at fair value. At December 31, 2004, fair value was $ 2,679,480 below the City’s net cost for its investments. At December 31, 2003 fair value was $567,114 above net cost. Fair value is determined by quoted market prices and acceptable other pricing methodologies.
The City pools its cash, except for that held by revenue bond trustees, fiscal and escrow agents, and certain debt service and agency fund cash and investments, for maximum investing efficiency. Earnings on the pool are allocated to individual funds at the discretion of the City Council after meeting revenue bond indentures and other requirements. All statutory requirements are met in distributing earnings of the pool to various funds.
The City Codes, Chapters 325 and 321, respectively, provide for a Treasury Investment Board and a Depository Commission. Both consist of the City Treasurer, who serves as chairman and represents the City Council; the City Auditor, an independently elected official; and the Director of the Department of Finance, representing the Mayor; hence a check and balance process via the separation of powers.
Pursuant to these code sections, the City does not purchase any form of derivatives. The City does invest in STAROhio, an investment pool managed by the State Treasurer’s Office that allows governments within the State to pool their funds for investment purposes. STAROhio is not registered with the Securities Exchange Commission as an investment company, but does operate in a manner similar to Rule 2a-7 of 83 NOTE C—CASH AND INVESTMENTS (continued) the Investment Company Act of 1940. Investments in STAROhio are valued at STAROhio’s share price that is the price the investment could be sold for on December 31, 2004.
Management of STAROhio states that its policy also prohibits investing in derivatives and/or engaging in the use of reverse repurchase agreements. Average days to maturity of the STAROhio portfolio at December 31, 2004 was 45 days. The City is prohibited from using reverse repurchase agreements and does not leverage its investment portfolio in any manner. The City purchases investments only through member banks of the Federal Reserve System or broker dealers registered with the National Association of Security Dealers. The City requires broker dealers to formally apply for and be evaluated for eligibility to conduct business with the City. The City’s investment code and practices have consistently protected the portfolio from unnecessary credit risk (safety) and market risks (liquidity) while providing a competitive yield. Generally, only eligible investments with the remaining terms not greater than two years until final maturity are purchased by the Treasurer. Investments with a remaining term of greater than two years may be purchased only with the specific approval of City Council. Average days to maturity of the City’s investments with the Treasurer at December 31, 2004 was 231.0 days. Investments as permitted by Chapter 325 of the Columbus City Code are:
(A) Bonds, notes, or other obligations of the United States government or its Agencies for which the faith of the United States is pledged for the payment of principal and interest thereon. They are:
Obligations of the United States government: • United States Treasury Bills • United States Treasury Notes • United States Treasury Bonds • United States Treasury Strips
Obligations guaranteed by the United States government: Federal government agencies: • Department of Housing and Urban Development • Farmers Home Administration • General Service Administration • Government National Mortgage Association • Maritime Administration • Washington Metropolitan Area Transit Authority
(B) Bonds, notes, debentures, or other obligations issued by any of the federal government-sponsored enterprises listed below. They are: • Federal Farm Credit System • Federal Home Loan Banks • Federal Home Loan Mortgage Corporation • Federal National Mortgage Association
(C) The Ohio State Treasurer’s Asset Reserve Funds (STAROhio) pursuant to Ohio Revised Code 135.45;
(D) Bonds or other obligations of the City of Columbus, Ohio;
(E) Obligations of the State of Ohio or any municipal corporation, village, county, township, or other political subdivision of the State of Ohio, as to which there is no default of principal or interest and which have been approved as to their validity by nationally recognized bond counsel.
(F) Certificates of deposits (collateralized as described below) in eligible institutions applying for 84 NOTE C—CASH AND INVESTMENTS (continued)
moneys as provided in Chapter 321 of Columbus City Codes; and
(G) Repurchase agreements that are collateralized with legally authorized securities as defined in Chapter 321.08 of Columbus City Code and held in third-party safekeeping designated by the City Treasurer and in the name of the City of Columbus.
Safeguarding activities call for the City’s investments with the Treasurer, except for investments with STAROhio, investments held by revenue bond trustees, fiscal and escrow agents, and certain debt service and agency funds, to be held in book entry form at federal reserve banks in the accounts of certain member banks-agents of the City who hold the investments in the City’s name.
The revenue bond agreements of the water and sanitary sewer enterprises require certain cash and investments to be maintained and managed by trustees. The respective trustees, bank trust departments, invest these monies at the direction of the City Auditor pursuant to the revenue bond agreements.
All of the City’s deposits and investments comply with State statutes, City ordinances, and applicable bond indentures.
Deposits: Custodial credit risk is the risk that, in the event of a bank failure, the City’s deposits may not be returned. The City’s policy is to place deposits with major local banks (as defined by Chapter 321 of the City Code) approved by the Depository Commission. All deposits, except for deposits held by fiscal and escrow agents or trustees, are collateralized with eligible securities in amounts equal to at least 105% of the carrying value of the deposits. Such collateral, as permitted by Chapter 135 of the ORC and Chapter 321 of the Columbus City Code, is held in single financial institution collateral pools at Federal Reserve Banks, or at member banks of the federal reserve system in the name of the respective depository bank, and pledged as a pool of collateral against all of the public deposits it holds or as specific collateral held at a Federal Reserve Bank in the name of the City.
At December 31, 2004, the carrying amount of all City deposits, exclusive of money market funds in the amount of $15,762,933 held by bond trustees, was $170,786,354. Based on the criteria described in GASB Statement No. 40, Deposits and Investment Risk Disclosures, as of December 31, 2004, $134,455,780 of the City’s bank balance of $171,201,765 was exposed to custodial risk as follows:
(in thousands) Uninsured and collateral held by the pledging financial institution’s agents not in the City’s name $ 133,922 Uncollateralized and uninsured 534 Total balances per banks $ 134,456
The money market funds, amounting to $15,762,933, while held by bond trustees as the City’s agents and in the City’s name, are also considered uncollateralized and uninsured. However, their disposition and availability are governed by bond ordinances and indentures.
85 NOTE C—CASH AND INVESTMENTS (continued)
Investments: As of December 31, 2004, the City had the following investments and maturities. (Amounts are in thousands.)
Investment Maturities Greater 6 months 7 to 12 13 to 18 19 to 24 than 24 Investment Type Fair Value or less months months months months STAROhio $ 3,926 3,926 - - - - US Treasuries 42,281 37,315 4,966 - - - FFCB Notes 11,967 9,979 1,988 - - - FHLB Notes 280,468 153,686 88,732 26,870 11,180 - FHLMC Notes 144,280 46,436 12,869 82,003 2,972 - FMLMC Notes 17,953 - 17,953 - - - FNMA Notes 140,081 39,719 48,108 47,282 4,972 - City of Columbus Assessment Bonds 707 119 588 - - - City of Columbus Assessment Notes 3,330 1,225 739 1,366 - - City of Columbus G.O. Refunding Bonds 5,340 3,730 - 1,610 - - City of Columbus Revenue (TIF) Bonds 555 - - - - 555 Total $ 650,888 296,135 175,943 159,131 19,124 555
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy generally limits investment portfolio maturities to two years or less. The City Treasurer holds one investment which matures on August 1, 2012. This $555 thousand investment in City of Columbus Revenue (TIF) Bonds was specifically approved by City Council.
Credit Risk. The City’s investments in the FFCB, FHLB, and FHLMC Coupon Notes were rated AAA and Aaa by Standard & Poor’s and Moody’s Investor Services, respectively. The City’s investments in FMLMC have a short-term Standard & Poor’s credit rating of A-1+ and a short-term Fitch credit rating of F1+. The City’s investment in FNMA Coupon Notes were rated AAA by both Standard and Poor’s and Fitch. The City’s investments in various City of Columbus bonds and notes totaling $9,931,553 were not specifically rated; however, the City of Columbus Assessment Bonds are general obligations of the City. The City’s general obligation bond ratings by Standard & Poor’s and Moody’s Investor Services are AAA and Aaa, respectively. Standard and Poor’s has assigned STAROhio an AAAm money market rating.
Concentration of Credit Risk. The Treasury Investment Board guidelines do not place a limit on the amount which may be invested in any one issuer. Of the City’s total investments, 43.1% are FHLB Notes, 22.2% are FHLMC Notes, and 21.5% are FNMA Notes. All other investments not explicitly guaranteed by the U.S. government are less than 5% of the City’s total investments.
86 NOTE C—CASH AND INVESTMENTS (continued)
Reconciliation of Cash and Investments to the Statement of Net Assets: The following is a reconciliation of cash and investments to Statement of Net Assets as of December 31, 2004.
(in thousands) Investments (summarized above) $ 650,888 Carrying amount of the City’s Deposits 170,786 Money Market Funds held by Bond Trustees 15,763 Cash and collection items on hand 322 Less: City Auditor warrants payable (5,647) Total $ 832,112
Governmental Activities Governmental Funds Cash and investments with treasurer $ 500,795 Cash and investments with fiscal and escrow agents and other 455 Cash and cash equivalents with trustee 6,833 Investments 3,146 Internal Service Funds Cash and investments with treasurer 10,664 Total Cash and Investments – Governmental Activities 521,893
Business-Type Activities Enterprise funds Cash and cash equivalents with treasurer 97,830 Restricted cash and cash equivalents with treasurer and other 135,047 Restricted cash and cash equivalents with trustee 8,929 Total Cash and Investments – Business-Type Activities 241,806
Agency Funds - cash, cash equivalents and investments 68,413 Total $ 832,112
87 NOTE D—RECEIVABLES
Receivables at December 31, 2004 consist of the following:
Less Customer Special Gross Allowance and other HUD assess- Accrued Receiv- for uncol- Taxes Accounts Lease Loans ments interest Ables Lectibles Net (in thousands)
Governmental type funds: General fund $ 112,868 1 8,919 32,391 - - 1,910 156,088 (276) $ 155,812 General bond retirement - - - - 94 20 114 - 114 Special income tax 21,989 8,620 - - - - 30,609 - 30,609 Other governmental fund: - 5,540 - 83,968 - 84 89,592 (68,373) 21,219 Total governmental funds 134,857 23,079 32,391 83,968 94 2,014 276,403 (68,649) 207,754
Business type funds: Water - 20,957 - - - 320 21,277 (2,170)19,107 Sanitary sewer - 24,021 - - 222 229 24,472 (780) 23,692 Storm sewer - 4,814 - - - 178 4,992 - 4,992 Electricity - 6,471 - - 2,581 56 9,108 (1,551) 7,557 Total business type funds - 56,263 - - 2,803 783 59,849 (4,501)55,348
Internal service funds - 1,002 - - - - 1,002 - 1,002
Total $ 134,857 80,344 32,391 83,968 2,897 2,797 337,254 (73,150) $ 264,104
Housing and Urban Development (HUD) loans include Community Development Act (CDA) loans of $36.4 million, Home Investment Partnerships (HOME) Program loans of $40.9 million, and various other loans totaling $6.7 million. Funds received under these programs that are loaned to eligible recipients are recorded as loans receivable. The City has recorded a $68.4 million allowance for uncollectible HUD loans. In addition, the net receivable balance has been reported as a reservation of fund balance on the governmental fund financial statements.
88 NOTE D—RECEIVABLES (continued)
The revenue related to certain other receivables presented in the table above has been deferred due to the nature of those receivables. Deferred revenue and other is comprised of the following:
(in thousands) Business Type Special Other Activities – Income Governmental Enterprise General Tax Funds Totals Funds
Income tax (Note L) $ 40,695 13,565 - $ 54,260 $- Property tax (Note M) 45,800 - - 45,800 - Shared revenue 24,881 - 15,181 40,062 - Lease receivable (SWACO – Note H) 32,014 - - 32,014 - EMS receivable 7,310 - - 7,310 - CRAA receivable on long term debt - 8,620 - 8,620 - Special assessments - - - - 1,403 Grants and other - - 9,082 9,082 - $ 150,700 22,185 24,263 $ 197,148 $ 1,403
Enterprise customer and other accounts receivable include unbilled charges for services at December 31, 2004 as follows:
(in thousands) Water enterprise $ 9,093 Sanitary sewer enterprise 11,434 Storm sewer enterprise 2,635 Electricity enterprise 3,207 $ 26,369
89 NOTE E—DUE FROM AND DUE TO / INTERFUND RECEIVABLES AND PAYABLES
(in thousands) Due from Due to Governmental funds: General $ 7,374 349
General bond retirement - 373
Special income tax 36 171
Other governmental: HOME Program Entitlement 11 - Cable communications 51 76 General government grant fund 26 2 Local law enforcement block grant 1 - Special purpose - 2 Municipal court projects 11 - Municipal court clerk 18 - Housing business tax incentive 2 - Development services 514 9 Community development act 111 1 Health 280 1 Health grants 146 - Street construction maintenance and repair 1,507 85 Golf course operations 74 - Recreation and parks operations 449 49 Recreation and parks grants 146 - Private grants 2 - Collection fees - 1 Parks and Recreation bond V-95, 99 - 68 Streets and highways V-95, V-99 - 1,154 Northland and Other Acquisitions - 3 Transportation improvement program - 11 State issue 2-streets - 7 Federal state highway engineering - 32 3,349 1,501 Internal Service Funds: Employee benefits 297 - Fleet management 408 17 Information services 150 41 City print services 16 1 Land acquisition 57 - 928 59 Business type funds: Water 598 58 Sewer 616 44 Storm sewer 212 61 Electric 537 75 1,963 238 Fiduciary type funds: Payroll 6 10,965 $ 13,656 13,656
90 NOTE E—DUE FROM AND DUE TO / INTERFUND RECEIVABLES AND PAYABLES (continued)
The outstanding balances between funds result mainly from the time lag between the dates that interfund goods and services are provided, transactions are recorded in the accounting system and payments between funds are made.
In addition, the City has $4 million due from the CRAA, a joint venture, to the Special Income Tax Fund, a debt service fund, for past operating advances, $1.0 million in 1983, $1.3 million in 1986 and $1.7 million in 1990. Although an allowance for this amount has been provided for in the debt service fund; the amount remains recorded as a liability by CRAA pending an ultimate determination of the amount to be repaid, if any.
Certain Interfund Receivable/Payables of a longer term repayment schedule also exist. The Special Income Tax fund has paid debt service on certain general obligation bonds, proceeds of which were used for golf course improvements. The Recreation debt service fund, not a major fund, will make repayments from a portion of its revenues.
(in thousands) Receivable Payable Interfund Receivable/Payables: Special Income Tax $ 4,418 - Other Governmental: Recreation debt service - 4,418 $ 4,418 4,418
91 NOTE F—CAPITAL ASSETS
Capital assets; those assets with an estimated useful life of five years or more from the time of acquisition by the City and a cost of $5,000 or more, are primarily funded through the issuance of long term bonds and loans. Land and construction in progress are not subject to depreciation.
A summary of capital assets and changes occurring in 2004 follows.
(in thousands) Balance Balance December 31, December 31, 2003 Additions Deletions 2004 Capital Assets used in: Governmental Activities Nondepreciable capital assets- Land $ 195,303 10,775 1,183 $ 204,895 Total nondepreciable capital assets 195,303 10,775 1,183 204,895
Depreciable capital assets: Building 304,774 26,854 2,372 329,256 Improvements, other than building 136,799 17,694 80 154,413 Machinery and equipment 230,819 13,862 8,600 236,081 Infrastructure 946,169 75,839 157 1,021,851 Total depreciable capital assets 1,618,561 134,249 11,209 1,741,601
Accumulated depreciation: Building 100,883 7,654 1,067 107,470 Improvements, other than building 47,789 3,651 27 51,413 Machinery and equipment 172,395 15,058 8,211 179,242 Infrastructure 186,608 24,528 157 210,979 Total accumulated depreciation 507,675 50,891 9,462 549,104 Total depreciable capital assets, net 1,110,886 83,358 1,747 1,192,497 Total governmental activities capital assets, net $ 1,306,189 94,133 2,930 $ 1,397,392
Business Type Activities Nondepreciable capital assets: Land $ 45,364 1,939 1,708 $ 45,595 Construction in progress 116,777 12,941 24,905 104,813 Total nondepreciable capital assets 162,141 14,880 26,613 150,408
Depreciable capital assets: Building 200,885 41 225 200,701 Improvements, other than building 1,662,198 129,070 735 1,790,533 Machinery and equipment 107,234 2,278 3,069 106,443 Infrastructure 83,471 10,146 9 93,608 Total depreciable capital assets 2,053,788 141,535 4,038 2,191,285
Accumulated depreciation: Building 129,164 4,216 132 133,248 Improvements, other than building 499,821 37,951 396 537,376 Machinery and equipment 83,837 5,579 3,068 86,348 Infrastructure 12,222 2,200 8 14,414 Total accumulated depreciation 725,044 49,946 3,604 771,386 Total depreciable capital assets, net 1,328,744 91,589 434 1,419,899 Total business type activities capital assets, net $ 1,490,885 106,469 27,047 $ 1,570,307
92 NOTE F—CAPITAL ASSETS (continued)
Capital assets, net of accumulated depreciation, at December 31, 2004 appear in the Statement of Net Assets as follows. (in thousands)
Governmental Activities (excludes Internal Service Funds) $ 1,390,716 Business type activities: Internal service funds: Water enterprise $ 349,265 Fleet management $ 1,637 Sanitary sewer enterprise 1,057,104 Information services 4,421 Storm sewer enterprise 86,640 Telecommunications 611 Electricity enterprise 77,298 Land Acquisition 7
Depreciation expense in 2004 was charged to the following functions and funds. (in thousands) Governmental Activities (excluding Internal Service Funds): Internal Service Funds: General government $ 1,260 Fleet management $ 291 Public service 34,021 Information services 1,136 Public safety 7,984 Telecommunication 160 Development 660 Land Acquisitions 2 Health 92 $ 1,589 Recreation and parks 5,285 $ 49,302 Business Type Activities: Water enterprise $ 15,601 Sanitary sewer enterprise 28,884 Storm sewer enterprise 2,164 Electricity enterprise 3,255 $ 49,904
Interest incurred during the construction phase ($8.988 million in 2004), net of related interest earnings ($252 thousand in 2004), of business-type activity capital assets is included as part of the capitalized value of the assets constructed. Interest was capitalized in 2004 in the following activities/funds.
(in thousands) Water enterprise $ 31 Sanitary Sewer enterprise 8,705 $ 8,736
NOTE G—BONDS, NOTES, AND LOANS PAYABLE
Bonds, notes, and loans payable in the Statement of Net Assets are comprised of the following.
(in thousands) Business Type Activities Governmental Sanitary Storm Type Water Sewer Sewer Electric Amount outstanding at December 31, 2004 $ 858,841 273,614 649,152 94,647 39,100 Unamortized bond premium 30,179 10,758 10,686 3,498 2,200 Unamortized bond discount - (408) (890) - - Unamortized deferred amounts On refundings (4,306) (2,797) (2,883) (81) (12)
Amount per Statement of Net Assets $ 884,714 281,167 656,065 98,064 41,288
93 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
The following table shows the activity in bonds, notes, and loans payable during 2004. The balance for Sanitary Sewer OWDA/EPA loans at December 31, 2003 has been restated from the previously reported amount of $283.530 million to $288.005 million as described in Note S.
(in thousands) Balance Balance Amount December New December due in Type of obligation 31, 2003 Issues Refundings Maturities Refunded 31, 2004 2005 Governmental type General obligation OPWC notes $ 4,100 696 - 286 - $ 4,510 $ 158 Bonds-fixed rate 654,157 181,460 6,840 77,073 6,840 758,544 74,351 Bonds-variable rate 23,390 - - 2,295 - 21,095 2,295 Capitalized lease (Note J) 1,740 2,000 - 870 - 2,870 870 Information services bonds- fixed rate 3,165 2,620 110 625 110 5,160 615 Fleet management bonds-fixed rate 480 - - 30 - 450 30 Revenue obligations Bonds (TIFs)-fixed rate 30,455 24,810 31,620 380 29,520 56,985 485 Bonds (TIFs)-variable rate 5,000 1,700 - - 2,100 4,600 - Notes (TIF)-long-term fixed rate 3,058 1,542 - - - 4,600 N/A Single family mortgage revenue note (FNMA) 42 - - 15 - 27 N/A Total governmental type 725,587 214,828 38,570 81,574 38,570 858,841 78,804
Business type-enterprise Water General obligations Bonds-fixed rate 181,241 32,240 - 17,302 - 196,179 17,044 Bonds-variable rate 41,415 - - 3,140 - 38,275 3,140 Revenue obligations - Bonds-fixed rate 44,110 - - 4,950 - 39,160 5,320 Total water 266,766 32,240 - 25,392 - 273,614 25,504 Sanitary sewer General obligations Notes - 1,366 - - - 1,366 - Bonds-fixed rate 194,097 33,245 - 22,488 - 204,854 17,162 Revenue obligations Bonds-fixed rate 60,700 - - 11,300 - 49,400 11,670 Bonds-variable rate 51,600 - - - - 51,600 - OWDA/EPA loans 288,005 66,711 - 12,784 - 341,932 15,294 Total sanitary sewer 594,402 101,322 - 46,572 - 649,152 44,126 Storm sewer General obligations Bonds-fixed rate 61,393 33,515 5,040 4,526 5,040 90,382 4,305 Bonds-variable rate 4,610 - - 345 - 4,265 345 Total storm sewer 66,003 33,515 5,040 4,871 5,040 94,647 4,650 Electricity General obligations Notes 1,693 739 - 468 - 1,964 1,964 Bonds-fixed rate 20,620 15,672 2,220 3,706 2,220 32,586 3,280 Bonds-variable rate 5,460 - - 910 - 4,550 910 Total electricity 27,773 16,411 2,220 5,084 2,220 39,100 6,154 Total business type-enterprise 954,944 183,488 7,260 81,919 7,260 1,056,513 80,434 Total $1,680,531 398,316 45,830 163,493 45,830 $1,915,354 $ 159,238
94 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
The principal retirement and payment of obligations under the capitalized lease in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances is comprised of the following. (in thousands)
General obligation OPWC notes $ 286 Single Family Mortgage Revenue Note (FNMA) 15 General obligation bonds 79,368 Obligation under capital lease 870 Revenue bonds (TIFs) 380
Total $ 80,919
Proceeds from bonds and long-term notes in the Other Governmental Funds (Capital Projects Fund) Statement of Revenue, Expenditures, and Changes in Fund Balance consist of the following. (in thousands)
General obligation OPWC notes $ 696 General obligation bonds – New Issues 181,460 Revenue bonds (TIF) – New Issues 26,510 Revenue note (TIF) 1,542
Total $ 210,208
Premiums received on bonds are included in the Special Income Tax fund and Other Governmental funds in the amount of $17.443 million.
Short-Term Notes
The City issues special assessment notes for certain projects where the direct citizen-beneficiary of the project shares in its costs. Upon final determination of costs, the City then converts the remaining portion of the note (the portion not paid upon project completion by the citizen-beneficiary) to bonds. All special assessment notes are general obligations of the City and are held by the Debt Service Fund or the City’s pooled cash and investments with Treasurer. All such notes are accounted for in Business-Type-Enterprise activities.
Issuances and maturities of such notes during 2004 were as follows. (in thousands)
Balance Balance Maturity Interest December 31, December 31, Accounted for in: Date issued date rate 2003 Additions Deletions 2004 Electricity Enterprise 4/2/2003 7/2/2004 1.60% $ 140 - 140 $ - 4/2/2003 10/2/2004 1.70% 328 - 328 - 4/2/2003 4/2/2005 1.80% 1,225 - - 1,225 5/19/2004 7/19/2005 2.15% - 86 - 86 5/19/2004 8/19/2005 2.15% - 299 - 299 5/19/2004 11/19/2005 2.15% - 354 354 Total Electricity $ 1,693 739 468 $ 1,964
Sanitary Sewer Enterprise 10/27/2004 1/27/2006 2.29% $ - 1,235 - $ 1,235 10/27/2004 1/27/2006 2.29% - 131 - 131 Total Sanitary Sewer $ - 1,366 - $ 1,366
95 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Long-Term Notes
Except for the FNMA note and the TIF note, all other notes payable are backed by the full faith and credit, i.e. general obligations, of the City. Notes may be issued in anticipation of long-term bond financing and are refinanced until such bonds are issued. There are, however, long-term notes for which the debt service will be paid from current resources. Those notes are as follows.
Ohio Public Works Commission (OPWC): OPWC extends both grants and loans to the City. In certain OPWC commitments, the agreements with OPWC provide for cash received by the City to be first considered as grant receipts. Monies received by the City after the grant commitment has been fulfilled by OPWC are then considered loans. Only the loan portion need be repaid by the City. The first two commitments from OPWC included loan monies only.
Notes in the amount of $4.5 million accounted for as Governmental type represent the amounts due on fifteen loans from the Ohio Public Works Commission (OPWC) for infrastructure improvements. These notes are non-interest-bearing and have serial maturities, with final maturities July 1, 2024. Initial repayments of the loans began in July 1994. OPWC has committed to additional non-interest-bearing loans as shown below. Cash is provided to the City by OPWC only to the extent of project completion. Only that portion of the loan commitment actually paid to the City is recognized as a liability by the City. Repayments of these loans are made from the Debt Service Fund. OPWC loans are considered general obligations of the City and Governmental type obligations. Grant and loan commitments and loans outstanding at December 31, 2004 were as follows: (in thousands)
Repaid by City Outstanding Project Total grant Total loan Total Loaned Prior to In Loans at Project Number commitment commitment at 12/31/04 2004 2004 12/31/04 Sawmill Road CC515 $ – $ 200 200 100 10 90 Roberts Road CC522 – 902 902 456 45 401 Neil Avenue CC814 2,278 56 56 18 3 35 Cleveland Ave. North CC903 2,503 1,347 1,347 403 67 877 Cleveland Ave. South CC914 2,773 1,053 1,053 290 53 710 Main Street Rehab. CC019 441 88 88 23 4 61 Mound Street Rehab. CC017 546 98 98 27 5 66 Livingston Ave. Rehab. CC015 1,622 352 352 98 18 236 Group 6 CC013 361 58 58 12 3 43 Edgehill Improvements CC15A 577 162 162 32 8 122 US 23 Culvert CC18A 305 39 39 10 2 27 James Road CC08B 2,867 623 623 93 31 499 Stelzer Road CC06C 2,082 87 87 2 4 81 Greenlawn Avenue CC04D 5,298 1,277 1,277 - 32 1,245 ADA Curb Ramps CC08D 470 18 18 - 1 17 Morse Rd. Phase 1 CC06H 3,854 1,354 - - - - McKinley Avenue CC13H 1,168 1,107 - - - - Total $ 8,821 6,360 1,564 286 4,510
Future debt service requirements on the OPWC loans and loan commitments are shown as Future Debt Service for Governmental Type Non-Proprietary – Notes contained in this Note G.
Notes (TIF): This amount represents a developer’s participation in debt service on certain limited general obligation bonds. The agreement between the City and the developer requires the developer to pay to the City 65% of debt service on the applicable portion of the bonds less the revenues received by the City from two TIFs. The amount received by the City from the developer on February 19, 2004 was $1,542,077, on March 5, 2003 was $1,836,912, and on April 27, 2002 was $1,220,536. The City must begin repaying the developer when the applicable TIF revenues exceed 65% of the debt service on the
96 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued) applicable portion of the bonds. The interest rate on the notes shall not exceed the City’s rate of borrowing on general obligation bonds. The interest rate on the notes is estimated to be 4.60%. The repayment obligation is limited solely to revenues of the two applicable TIFs and does not constitute a general obligation of the City. While a precise date for beginning repayments of the notes and any such future notes can not be determined, it is estimated that such repayments will not begin for several years.
FNMA: The City participates in various affordable housing efforts. The following long-term note is not a general obligation of the City but is payable solely from mortgage payments made by the homebuyers and certain grant funds provided solely for this purpose. The FNMA note is also considered a governmental type obligation.
Issue Maturity Interest Outstanding Date Date Rate At 12/31/2004 Non-enterprise: (in thousands) Federal National Mortgage Association (FNMA) Single Family Mortgage Revenue Note 8/11/98 9/1/09 6.63% $ 27
Arbitrage Regulations
The City has calculated and recorded all liabilities related to federal arbitrage regulation.
97 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Long-Term Summary
Long-term debt, both general obligation (G.O.) and revenue supported is summarized below, exclusive of the capitalized lease (Note J).
Weighted Years Average Years of due Interest Amount Issue through Interest rate rate (in thousands) Governmental type G.O. Ohio Public Works Commission notes 1993-2003 2024 0.00% 0.00% $ 4,510 G.O. Bonds–fixed rate 1980-2004 2025 1.47% to 12.375% 5.21% 758,544 G.O. Bonds-variable rate 1996 2017 0.80% to 1.96% 1.18% 21,095 (1.96% at year end) G.O. Information services bonds-fixed rate 1994-2004 2011 1.47% to 5.67% 5.13% 5,160 G.O. Fleet management bonds-fixed rate 1998 2019 4.125% to 5.00% 4.59% 450 Revenue Bonds (TIFs)-fixed rate-Easton 2004 2026 2.50% to 5.00% 4.25% 36,430 Revenue Bonds (TIFs)-fixed rate-Brewery 2002 2012 6.20% 6.20% 555 Revenue Bonds (TIFs)-fixed rate-Polaris 2004 2026 2.00% to 4.75% 4.26% 20,000 Revenue Bonds (TIFs)-variable rate-Waggoner 2004 2029 1.00% to 2.05% 1.32% 1,700 (2.05% at year end) Revenue Bonds (TIFs)-variable rate-Brewery 2002 2022 0.90% to 1.99% 1.24% 2,900 (1.99% at year end) Revenue Note (TIF)-fixed rate 2002-2004 - 4.30% 4.30% 4,600 Revenue FNMA note 1998 2019 6.63% 6.63% 27 Total governmental type $ 855,971 Business type – enterprise Water G.O. bonds-fixed rate 1968-2004 2020 4.42% to 12.375% 5.29% $ 196,179 G.O. bonds-variable rate 1995-1996 2017 0.80% to 1.96% 1.18% 38,275 (1.96% at year end) Revenue bonds-fixed rate Series 1999 1999 2010 5.00% 5.00% 39,160 Sanitary sewer G.O. bonds-fixed rate 1977-2004 2025 4.22% to 12.375% 5.40% 204,854 Revenue bonds-fixed rate Series 2002 2002 2008 5.00% 5.00% 49,400 Revenue bonds-variable rate Series 1994 1994 2011 0.90% to 1.99% 1.24% 51,600 (1.99% at year end) OWDA-EPA loans 1977-2004 2028 0.91% to 6.75% 3.99% 341,932 Storm sewer G.O. bonds-fixed rate 1972-2004 2025 1.81% to 12.375% 5.16% 90,382 G.O. bonds-variable rate 1995-1996 2017 0.80% to 1.96% 1.18% 4,265 (1.96% at year end) Electricity G.O. bonds-fixed rate 1992-2004 2015 1.81% to 6.25% 5.23% 32,586 G.O. bonds-variable rate 1996 2009 0.80% to 1.96% 1.18% 4,550 (1.96% at year end) Total business type-enterprise 1,053,183 Total $ 1,909,154
98 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Certain characteristics of the City’s debt are shown in the following table.
(in thousands)
Business Type Governmental Sanitary Storm Type Water Sewer Sewer Electricity Total Total Amount outstanding General obligations (G.O.) $ 789,759 234,454 204,854 94,647 37,136 $ 571,091 $ 1,360,850 Revenue obligations 66,212 39,160 442,932 - - 482,092 548,304 Total $ 855,971 273,614 647,786 94,647 37,136 $ 1,053,183 $ 1,909,154 % of outstanding amounts General obligations (% X total) 92.3% 85.7% 31.6% 100.0% 100.0% 54.5% 71.3% Limited-unvoted (% X G.O.) 36.5% 21.0% 9.6% 42.1% 14.4% 20.0% 29.5% Unlimited-voted (% X G.O.) 63.5% 79.0% 90.4% 57.9% 85.6% 80.0% 70.5% Revenue obligations (% X total) 7.7% 14.3% 68.4% 0.0% 0.0% 45.5% 28.7% % X Principal paid out within 10 yrs General obligations 79.7% (1) 78.4% 70.4% 60.9% 95.8% 73.8% 77.2% (1) Revenue obligations 24.4% (2) 100.0% 100.0% (3) - - 100.0%(3) 76.9%(2)(3) Weighted average interest rate General obligations 5.08% 4.57% 5.40% 4.95% 4.59% 4.94% 5.02% Revenue obligations 4.17% 5.00% 3.79% - - 3.90% 3.92%
(1) Exclusive of Ohio Public Works Commission Notes of $4,510,453. (2) Exclusive of TIF Note of $4,599,526 and FNMA Note of $27,171. (3) Exclusive of Ohio Water Development Authority Loans of $341,931,565.
Variable interest rate bonds
The variable interest rate bonds were issued, pursuant to ordinances adopted by Council, in the Electricity Enterprise in 1996; Sanitary Sewer Enterprise in 1994; Water Enterprise in 1995 and 1996; Storm Sewer Enterprise in 1995 and 1996; and Non-enterprise in 1995 and 1996, respectively. The 1994 Sanitary Sewer (weekly interest rate mode) bonds are revenue bonds. The Water Enterprise, the 1996 Electricity Enterprise, the Storm Sewer Enterprise, and the Non-enterprise bonds are variable rate, weekly interest rate mode, general obligation bonds. The proceeds of the bonds were used to provide funds for certain capital improvements, retire certain bonds and notes previously issued by the City, establish bond reserve funds, where required, in accordance with trust agreements, and pay costs incurred to issue the bonds.
Interest on the variable interest rate bonds is paid at various times as specified in the trust agreements relating to such bonds, at rates determined by the remarketing agent and the City after reviewing the rates of similar municipal issues. The bonds may be put at the discretion of the holders at a price equal to principal plus accrued interest on any interest payment date or such other dates as specified in the trust agreements. The remarketing agent is authorized to use its best efforts to sell the put bonds at a price equal to 100% of the principal amount.
The variable rate general obligation bonds are accounted for in the Governmental type bonds ($21.095 million) the Water Enterprise Fund ($38.275 million), the Electricity Enterprise Fund ($4.550 million), and the Storm Sewer Enterprise Fund ($4.265 million). These bonds are enhanced by a Liquidity Facility provided by Westdeutsche Landesbank Girozentrale—New York Branch (West L-B).
Under the Liquidity Facility for the variable rate general obligation bonds, subject to certain terms and conditions set forth therein, West L-B agrees to make funds available to purchase bonds that are tendered or required to be tendered for purchase and not remarketed or for which remarketing proceeds are not delivered. The Liquidity Facility on the 1995 variable rate general obligation bonds and the 1996 variable rate general obligation bonds will expire on June 15, 2011 and December 15, 2011, respectively, subject to earlier termination in accordance with its terms, but may be extended or replaced. Extension of the
99 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued) termination date, if the City requests, is at the option of West L-B. The immediate termination or suspension of West L-B’s obligation to purchase bonds under the Liquidity Facility does not result in acceleration of the bonds. West L-B is not obligated to pay the principal or redemption price of or interest on the bonds under any circumstances, but is obligated only to purchase bonds upon the tender thereof, subject to the terms and provisions of the Liquidity Facility.
If West L-B should be required to purchase these bonds, the City would be required to pay West L-B interest at the higher of the West L-B’s prime rate (5.25% at December 31, 2004) or 2% over the Federal Funds rate. This increased interest is reflected in the following table as Debt Service Fund, Water Enterprise Fund, Electricity Enterprise Fund, and Storm Sewer Enterprise Fund general obligation bonds.
The Brewery TIF variable rate revenue bonds ($2.9 million) and the Waggoner TIF variable rate revenue bonds ($1.7 million) are both enhanced by letters of credit issued by Huntington National Bank, Columbus, Ohio.
The Sanitary Sewer variable rate revenue bonds ($51.6 million) carry no letter of credit or liquidity enhancement. If a put bond proves to be unremarketable by the remarketing agent, the City is required by statute to buy the bonds into its own portfolio. A specific interest rate is not required of the Sanitary Sewer variable rate revenue bonds if purchased into the City’s investment portfolio.
The following table reflects the additional interest the City would have to pay if the variable rate bonds were purchased into the City’s own portfolio. The assumed incremental interest rate in the table is 5.25%.
(in thousands) Debt Service Enterprise Funds Fund Storm General Water Electricity Sewer Sanitary Obligation General General General Sewer and Revenue Obligation Obligation Obligation Revenue Bonds Bonds Bonds Bonds Bonds Year ending December 31: 2005 $ 1,399 1,958 259 222 2,709 2006 1,279 1,793 211 204 2,709 2007 1,158 1,628 163 186 2,709 2008 1,038 1,463 115 167 2,709 2009 918 1,298 68 149 2,292 2010-2014 2,731 4,023 - 475 1,908 2015-2013 820 504 - 74 - 2020-2024 309 - - - - 2025-2029 85 - - - - $ 9,737 12,667 816 1,477 15,036
The City may, at its option, convert the variable rate bonds to a fixed rate. Furthermore, the bonds may be called at the discretion of the City under specified procedures on any interest payment date.
Future Debt Service
The following tables summarize the City’s future debt service requirements on its outstanding bonds, long- term notes, and OWDA/EPA loans and loan commitments as of December 31, 2004. Future interest assumes rates on variable rate debt in effect at December 31, 2004. Although the variable rate bonds may be payable upon demand (as described previously), the City intends to repay these issues in accordance with the respective redemption schedules.
100 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
(in thousands) Governmental Type Governmental Type Non-Proprietary Internal Service Bond Note Principal Principal Interest Principal Interest Year ending December 31: 2005 $ 77,131 158 40,694 645 264 2006 85,759 318 37,366 1,070 246 2007 82,984 318 32,898 1,065 189 2008 72,441 318 28,726 950 136 2009 62,639 318 25,209 885 89 2010-2014 254,149 1,562 84,431 845 89 2015-2019 147,125 1,129 31,873 150 17 2020-2024 49,150 389 7,815 - - 2025-2029 9,846 - 671 - - $ 841,224 4,510 289,6835,610 1,030
Enterprise Funds Water Sanitary Sewer Electricity Bond OWDA Principal InterestPrincipal Principal Interest PrincipalInterest Year ending December 31: 2005 $ 25,50412,547 28,832 15,294 26,924 4,190 1,669 2006 27,44911,327 30,748 16,980 25,316 5,332 1,574 2007 27,8829,879 31,117 18,137 23,573 5,060 1,336 2008 25,8708,521 30,110 23,108 25,434 4,477 1,092 2009 26,3517,273 32,631 28,938 28,464 4,439 882 2010-2014 90,01321,040 91,861 159,733 110,893 12,081 1,936 2015-2019 48,4005,544 40,445 169,606 66,621 1,557 78 2020-2024 2,145107 18,450 148,426 28,170 - - 2025-2029 - - 1,660 67,303 4,972 - - $ 273,614 76,238 305,854 647,525 340,367 37,136 8,567
Enterprise Funds (continued) Storm Sewer Principal Interest Year ending December 31: 2005 $ 4,650 4,518 2006 6,307 4,419 2007 6,263 4,097 2008 6,085 3,776 2009 5,999 3,468 2010-2014 28,315 12,949 2015-2019 23,710 6,380 2020-2024 11,644 1,862 2025-2029 1,674 77 $ 94,647 41,546
101 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Restricted Assets
In conjunction with the issuance of the Water and Sanitary Sewer revenue bonds, the City entered into various trust agreements with commercial banks. These trust agreements require that the City establish various funds for the cost of construction and repayment of debt. The restricted asset balances in the Enterprise Funds segregate funds held by the City from funds held by trustees in accordance with the trust agreements. Enterprise restricted assets consisted of the following at December 31, 2004:
(in thousands)
SanitaryStorm Total Water Sewer Sewer Electricity Enterprise Held by the City— Construction funds $ 58,711 15,848 45,418 15,070 $ 135,047 Held by trustees— Debt service funds 1,826 7,103 - - 8,929 Accrued interest receivable on investments - 7 - - 7 Total restricted assets $ 60,537 22,958 45,418 15,070 $ 143,983
Except for accrued interest receivable, restricted assets consist of cash, cash equivalents, and investments. In addition, these trust agreements require the City to pledge net revenues (defined in the trust agreement as revenues less operating and maintenance expenses) of the Water and Sanitary Sewer Enterprise Funds to the payment of the principal and interest on the respective bonds when due.
In the opinion of management, the city has complied with all bond covenants.
Matured Bonds and Interest
Matured bonds and interest payable include $1.082 million and $627 thousand respectively at December 31, 2004; $1.107 million and $626 thousand at December 31, 2003.
OWDA
Loans payable to the Ohio Water Development Authority (OWDA/EPA), $341.932 million are revenue obligations incurred to help finance sewerage treatment facilities and are to be repaid from charges for sewerage services.
The City entered into a loan agreement with OWDA/EPA for the upgrade of wastewater treatment facilities wherein the City agreed to participate in the Ohio EPA’s Water Resource Restoration Sponsor Program (WRRSP). The agreement called for a loan to the City of $20.993 million with $15.993 million for use by the City and $5.0 million for use by the Columbus and Franklin County Metropolitan Park District (Metro Parks), a separate and distinct political subdivision of the State of Ohio.
At December 31, 2004 the City has accounted for $18.100 million in the Sanitary Sewer Enterprise Fund (Business Type Activities), representing $13.625 million disbursed by OWDA to the City and $4.475 million disbursed to Metro Parks, as bonds and loans payable.
The City benefited from a significantly reduced interest rate on the loan which resulted in the total debt service on the $20.993 million loan agreement to equate to debt service on the $15.993 million City portion had the City not agreed to the cooperative agreement.
102 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Voted Debt Authority
Various amounts of debt for various purposes were authorized by the City’s voters (voted-unlimited) in May 1991, November 1999, and November 2004. The remaining unissued amounts and purposes of these authorizations are shown in the following table (in thousands). There is no time limit regarding utilization of the authorization. (in thousands) Date Total Issued in Issued in Unissued as Authorized Authorized 1991–2003 2004 of 12/31/04 Sanitary sewer system 1991 $325,000 279,455 33,245 12,300 Public safety 1999 28,255 28,255 - - Recreation and parks 1999 59,37532,645 26,730 - Refuse collection 1999 10,675 8,295 2,380 - Streets and highways 1999 203,720 157,400 46,320 - Health 1999 30,50030,500 - - Electricity 1999 28,3307,955 15,420 4,955 Storm sewers 1999 30,000 30,000 - - Water system 1999 200,000 62,920 32,240 104,840 Sanitary sewer system 2004 95,785 - - 95,785 Public safety & Health 2004 40,665 - - 40,665 Recreation and parks 2004 46,640 - - 46,640 Refuse collection 2004 21,100 - - 21,100 Streets and highways 2004 184,420 - - 184,420 Electricity 2004 12,235- - 12,235 Storm sewers 2004 104,150 - - 104,150 Water system 2004 100,000 - - 100,000 $1,520,850 637,425 156,335 727,090
Bonds identified above as Sanitary sewer system, Electricity, Water system, and Storm sewers are accounted for in the respective Business type enterprise funds. Other bonds are accounted for as Governmental type bonds.
Legal Debt Margins
The ORC provides that the total net debt (as defined in the ORC) of a municipal corporation, whether or not approved by the electors, shall not exceed 10.5% of the total value of all property in the municipal corporation as listed and assessed for taxation. In addition, the unvoted net debt of municipal corporations cannot exceed 5.5% of the total taxation value of property. The statutory limitations on debt are measured by the ratio of net debt to tax valuation and expressed in terms of a percentage. At December 31, 2004 the City’s total net debt amounted to 4.15% of total assessed value of all property within the City and unvoted net debt amounted to 0.63% of the total assessed value of all property within the City. The City had a legal debt margin for total debt of $934.851 million and a legal debt margin for unvoted debt of $716.333 million. The aggregate amount of the City’s unvoted debt is also subject to overlapping debt restrictions with other political subdivisions.
Conduit Type Debt
In 1994, the City issued $2.225 million in library improvement revenue bonds in conjunction with the Worthington Public Library, another separate and distinct political subdivision. The site of this Worthington Public Library building, however, is located within the geographic boundaries of the City of Columbus. The proceeds of the bonds were used to construct and expand library facilities that were leased to the Board of Trustees of the library. The lessee makes lease payments directly to the revenue bond trustee in an amount equal to the revenue bond payments. In the event of default on the lease payments, the City’s liability is limited to surrendering possession of the library facilities to the trustees. The revenue bonds do not constitute a debt or a pledge of the faith and credit of the City and, accordingly, are not reflected in the accompanying basic financial statements. All payments of principal
103 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued) and interest were made when due. Bonds remaining outstanding at December 31, 2004 are as follows: (in thousands)
Outstanding at Final Issue Interest Original December 31, Maturity Title Date Rates Amount 2004 Date City of Columbus, Ohio Library Improvement Revenue Bonds, Series 1994 (Board of August 1, 5.00% to January 1, $ 2,225 $ 1,210 Trustees of the Worthington Public Library— 1994 6.15% 2015 Lessee)
Tax Increment Financing Districts (TIFs)
The City, pursuant to the Ohio Revised Code and City ordinances, has established 24 TIFs. A TIF represents a geographic area wherein property values created after the commencement date of the TIF are exempt, in whole or in part, from property taxes. Owners of such property, however, must pay amounts equal to the property taxes, known as “service fees”, as though the TIF had not been established. These “service fees” are then dedicated to the payments for various public improvements within or adjacent to the TIF area. However, payments from two of the TIFs will assist the City in paying for certain public improvements in an area remote from the TIF area. Property values existing before the commencement date of a TIF continue to be subjected to property taxes.
“Service fee” revenue, net of County Auditor deductions of $44 thousand, was $5.860 million in 2004 and is accounted for as miscellaneous revenue in the Debt Service Funds since these monies are intended to pay principal and interest on bonds whose proceeds will be used to construct public improvements. Corresponding fixed assets are accounted for in the City’s infrastructure accounts.
TIFs have a longevity of the shorter period of 30 years or until the public improvements are paid for. The property tax exemption then ceases; service fees cease, and property taxes then apply to the property values.
Premium and Issuance Costs
Only those bonds issued in 2004 having premiums and/or issuance costs, none had discounts, are shown in the following table.
(in thousands) Costs of Par Premium Issuance Governmental type GO Various purpose-new money $ 184,080 16,758 406 GO Various purpose-refunding 1,610 148 4 REV Easton TIF-new money & refunding 36,430 174 1,690 REV Polaris TIF-new money & refunding 20,000 363 571 REV Waggoner TIF-new money 1,700 - 102 Total $ 243,820 17,443 2,773
Business type GO Water enterprise-new money $ 32,240 3,030 71 GO Sanitary Sewer enterprise-new money 33,245 2,433 74 GO Storm Sewer enterprise-new money 33,515 2,535 75 GO Storm Sewer enterprise-refunding 2,270 172 5 GO Electricity enterprise-new money 15,420 1,548 34 GO Electricity enterprise-refunding 555 55 1 Total $ 117,245 9,773 260
104 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Refundings and Defeasances
On October 28, 2004, the City issued $20 million of tax increment financing (TIF) supported governmental type debt for the City’s Polaris project. This new TIF debt raised additional capital for the project, but also refunded $2.1 million of then outstanding TIF variable rate debt for the same project. No economic gain or loss resulted from the transaction. The transaction was accomplished as follows:
(in thousands) Sources of funds: Par amount of new bonds $ 20,000 Premium received 363 Total sources $ 20,363
Uses of funds: Redemption price and carrying value of old bonds $ 2,100 Underwriters’ discount and other costs of issuance 571 Provision for debt service reserve fund 1,727 Additional capital proceeds 15,965 Total uses $ 20,363
On November 23, 2004, the City issued $36.430 million of TIF supported governmental type debt for the City’s Easton project. This new TIF debt raised additional capital for the project, capital for the City’s downtown area remote from the TIF district and refunded/defeased existing TIF bonds related to the project. The refunding/defeasance, not transacted for the economic gain, eliminated certain restrictive covenants contained in the earlier bond indenture. The transaction was accomplished as follows.
(in thousands) Sources of funds: Par amount of new bonds $ 36,430 Premium received 174 Cash contribution from the City’s TIF fund 3,044 Total sources $ 39,648
Uses of funds: Redemption price and carrying value of old bonds $ 29,520 Additional funds to escrow agent 2,950 Total funds to escrow agent 32,470 Underwriters’ discount and other costs of issuance 1,690 Provision for debt service reserve fund 3,033 Additional capital proceeds 2,455 Total uses $ 39,648
105 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Deferred amounts on refunding/defeasance portion of the Easton project debt was calculated as follows:
(in thousands) Reacquisition price: Par proceeds from sale of new bonds $ 36,430 Premium received 174 Cash contribution from the City’s TIF fund 3,044 Less bond issuance costs (1,690) Less provisions for debt service fund (3,033) Less additional capital proceeds (2,455) Reacquisition price or amount paid to escrow agent 32,470 Net carrying amount of the old bonds 29,520 Deferred amount on refunding $ 2,950 Amortized in 2004 $ 14 Unamortized amount $ 2,936
Nominal increase in debt service, economic loss, and present value loss on the refunding/defeasance portion of the Easton project debt was calculated as follows:
(in thousands) Refunded (old) bonds: Principal $ 29,520 Interest 20,088 Total 49,608
Refunding (new) bonds: Principal 36,430 Interest 23,790 Total 60,220 Increase in debt service $ 10,612
Economic gain (loss) Present value of loss from cash flow $ (4,458) Cash contribution from TIF fund (3,044) Proceeds retained for debt service reserve fund 3,033 Additional capital proceeds 2,455 Net present value loss $ (2,014)
Present value rate: True interest cost of new bonds 4.48%
Interest rate borne by old bonds 4.25-5.30%
106 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Subsequent Event
On February 11, 2005 the City sold $295.015 million of General Obligation Refunding Bonds, dated February 23, 2005. The Refunding Bonds consisted of two series: $227.010 million of unlimited (voted) bonds with a final maturity of December 15, 2023 and $68.005 million of limited (unvoted) bonds with a final maturity of June 15, 2018. A summary of the refunding appears below.
Business Type – Enterprise Governmental Internal Water Sanitary Storm Electric Type Service System Sewers Sewers System Total
Reacquisition Price: Amount paid to escrow agent $ 191,021 278 42,062 61,192 28,185 3,574 $ 326,312
Net carrying amount of old bonds: Old bonds outstanding 173,245 260 38,740 55,965 25,580 3,320 297,110 Unamortized bond premium 974 - 843 1,149 149 - 3,115 Unamortized bond issuance costs (70) - (20) (16) (11) - (117) Net carrying amount of old bonds 174,149 260 39,563 57,098 25,718 3,320 300,108
Deferred amount on the refunding $ 16,872 18 2,499 4,094 2,467 254 $ 26,204
Nominal decrease in debt service, economic gain, and present value savings on the refunding/defeasance was calculated as follows:
Nominal savings, economic gain, and present value savings
Refunded (old) bonds Principal $ 173,245 260 38,740 55,965 25,580 3,320 $ 297,110 Interest 79,714 107 18,704 31,267 14,296 978 145,066 Total refunded 252,959 367 57,444 87,232 39,876 4,298 442,176
Refunding (new) bonds Principal 173,070 250 37,810 55,175 25,415 3,295 295,015 Interest 70,805 103 18,125 30,419 13,045 862 133,359 Total refunding 243,875 353 55,935 85,594 38,460 4,157 428,374
Unadjusted reduction in aggregate debt service 9,084 14 1,509 1,638 1,416 141 13,802
Accrued interest received ------Adjusted reduction in aggregate debt service $ 9,084 14 1,509 1,638 1,416 141 $ 13,802
Economic gain – present value of adjusted reduction in aggregate debt service $ 7,242 11 1,321 1,595 1,065 123 $ 11,357
Plus: refunding bonds issued 173,070 250 37,810 55,175 25,415 3,295 295,015 Plus: premium received 18,826 25 4,453 6,282 2,900 299 32,785 Less: payment to refunded bond escrow agent 191,021 278 42,062 61,192 28,185 3,574 326,312 Less: costs of issuance 1,083 2 245 335 156 20 1,841 Net present value savings $ 7,034 6 1,277 1,525 1,039 123 $ 11,004
Present value rate – true interest cost of new bonds 3.38% 3.38% 3.38% 3.38% 3.38% 3.38% 3.38%
4.25% to 4.25% to 4.25% to 4.625% to 4.25% to 4.75% to 4.25% to Interest rate borne by old bonds 5.75% 5.00% 5.25% 5.75% 5.75% 5.75% 5.75%
107 NOTE G—BONDS, NOTES, AND LOANS PAYABLE (continued)
Defeased Bonds A description of the City's advance refunded, defeased, bonds with remaining outstanding amounts follows: (in thousands)
Interest Amount Date Rates of Outstanding at Originally Original Par Redemption Date Maturities Defeased Amount December 31, Descriptions of Defeased bonds Issued Amount or Call Date Defeased Defeased Bonds Defeased 2004 Sewer Improvement No. 26 (U) – GO 6/15/91 $101,320 9/15/01 11/15/93 2011 6.00% $ 5,070 $ 5,070 (1) Sewer Improvement No. 6.00% to 26 (U) – GO 6/15/91 101,320 9/15/01 4/8/94 2005-2010 6.875% 30,405 30,405 (1) Tax Increment Financing Bonds, Series 1999 4.25% to (Easton Project) – REV 6/01/99 30,050 6/01/09 11/23/04 2004-2024 5.30% 29,520 29,520
(1) These defeasances apply to these maturities only. These bonds are not called. The City has escrowed money for principal and interest to their final maturities, 9/15/2005, 06, 07, 08, 09, 10, and 11. The City does, however, reserve the right to call these bonds.
NOTE H—ELECTRICITY
The City’s Electricity Enterprise celebrated its 105th year of operation in 2004. The Enterprise presently serves 3,887 commercial customers and 9,675 residential customers and in 2004 had operating revenues of $60.8 million ($57.6 million in 2003). During 2004, the Electricity Enterprise Fund received approximately 23.3% (24.3% in 2003) of its charges for services from other funds of the City for electric power. The enterprise purchases and resells its power. The enterprise does not generate power.
On November 30, 2000, the Enterprise entered into a mandatory, exclusive contract for the purchase of power at $36.14 per megawatt hour, adjusted for various transmission and other factors. The contract shall remain in effect until December 31, 2008, subject to the supplier’s option to terminate on December 31 of 2005, 2006, or 2007. The City intends to continue to operate its Electricity Enterprise. Included in receivables (Note D) in the General Fund is $32,391,317 representing amounts due from the Solid Waste Authority of Central Ohio (SWACO). On April 1, 1993, the City leased to SWACO an electricity-generating, solid waste recovery plant and related transfer stations (the Plant). The annual lease payments to the City were to be in the amount of the related debt service requirements. SWACO paid these rental payments to the City in a timely manner in 1993 and in 1994. The lease resulted in the removal of certain real and personal property assets from the Electricity Enterprise Fund with costs in the amount of $202,000,000. The lease was accounted for as a capital lease in accordance with Statement No. 13 of the Financial Accounting Standards Board, Accounting for Leases, as amended, and was originally accounted for in the Electricity Enterprise Fund.
Due to a series of federal court decisions and U.S. E.P.A. decisions, the Plant ceased operations in 1994. Because the asset underlying the lease was no longer a functioning asset, the lease was transferred from the Electricity Enterprise Fund to the Special Income Tax debt service fund in 1994. General obligation bonds outstanding at that time and related to the construction of the underlying assets were also transferred, in 1994, from the Electricity Enterprise Fund to the then existing General Long-Term Obligations Account Group. These bonds now appear in the financial statements as Governmental type general obligation fixed rate bonds. In 1984, the City issued $70.0 million of Variable Rate Demand Electric System Revenue Bonds. Proceeds of the bonds were used toward the completion of the Plant. Bondholders, however, had first lien on all revenues of the Electric Enterprise. Even after the closure of the Plant in 1994, these bonds, because of the lien on all revenues of the enterprise, remained as liabilities of the enterprise. In 2001, these revenue bonds were converted, refunded by the issuance of Governmental Type general obligation fixed rate unvoted bonds of the City. Since no claim on enterprise
108 NOTE H—ELECTRICITY (continued) revenues remains and the related asset was long ago, 1994, transferred out of the enterprise, the remaining bonds of $29.450 million outstanding at December 31, 2001 were transferred out of the enterprise in 2002 as a Nonreciprocal Interfund Transfer.
In 1998 and again in 1999, the City and SWACO amended the lease, the third and fourth modifications. Essentially, the City agreed to reduce the amount due from SWACO to the City to an amount equal to 65% of debt service and associated bond costs required for the City’s bonds from January 1, 1995 to the bonds’ final maturity in 2010. SWACO agreed to impose a new fee on garbage originating throughout the SWACO boundaries, primarily Franklin County, Ohio. The City, rather than pay cash to SWACO for residential type garbage picked up by City garbage trucks, grants a credit to SWACO against the amount due by SWACO to the City. This credited amount approximates $2.5 million annually. This new fee applies to all garbage originating within SWACO boundaries regardless of whether the garbage is disposed of (tipped) at SWACO’s landfill or not. This new fee, authorized by SWACO in December 1998, became effective at various dates in 1999.
SWACO operates a landfill and agrees to continue to operate the landfill in a manner that ensures that disposal capacity in the Franklin County Landfill will be available to the City and its residents through, at a minimum, the year 2025. The City continues to agree to dispose of all garbage collected by the City at the SWACO landfill. In 2004, the City paid SWACO $10.4 million for landfill tipping fees ($10.3 million in 2003).
The lease of the Plant between the City and SWACO extends to March 31, 2010 with automatic renewals of 5-year terms at annual rentals of $100,000, unless SWACO chooses not to renew. SWACO, however, with consent of the City, began partial demolition of the plant in 2005. The lease payment obligation to the City will, however, continue.
As stated in Note R- Subsequent Events in the City’s Comprehensive Annual Financial Report for the fiscal year Ended December 31, 2003; the City, on May 4, 2004, received $55.100 million from SWACO for partial satisfaction of lease rental payments described herein. This $55.100 million resulted from proceeds of revenue bonds sold by SWACO and paid to the City; primarily representing delinquent lease rental payments due to the City in previous years and accounted for by the City as deferred revenue in the Debt Service Funds. Also in 2004, the City received an additional $4.306 million from SWACO’s other resources.
In 2004, pursuant to statute, the City began accounting for the SWACO lease in its General Fund. The City received $377,500 from SWACO in January 2005 and is recognized as revenue in 2004 (60 day rule). All lease receivable amounts not received within 60 days after year end have been accounted for as deferred revenue in the General Fund (see Note D).
Revenue included in Note O-Miscellaneous Revenues as Rent: SWACO consists of $59.406 million cash received from SWACO in 2004 plus $377,500 received in January 2005 plus $2.474 million in costs paid by SWACO on behalf of the City less $500,000 cash received from SWACO in January 2004 and recognized as revenue in 2003; a total of $61.758 million.
109 NOTE H—ELECTRICITY (continued)
A reconciliation of the debt service on the City’s bonds related to the SWACO agreement to the City’s lease receivable due from SWACO at December 31, 2004 follows:
Debt service: 1995-2003 $ 156,737,718 2004 15,557,226 Projected debt service 2005-2010 58,033,693
Total applicable debt service $ 230,328,637
65% of total applicable debt service $ 149,713,615 Less:
Payments made by SWACO: 1995-2003 (52,923,193) 2004 (59,406,190) Credits in lieu of payments - Retired facility fee: 1999-2003 (11,341,965) 2004 (2,466,471) Environmental costs and other: 1998-2003 (3,401,217) 2004 ( 7,978) Interest due on deferred payment: 1998-2003 12,099,247 2004 125,469 Amount due from SWACO to City at 12-31-2004 $ 32,391,317
The amount due from SWACO at December 31, 2004 includes $377,500 recognized as revenue in 2004 with the remaining $32.014 million deferred. See Note D.
Debt service for 1995 through 2004 includes actual principal and interest on the general obligation bonds and principal and interest on the revenue bonds paid to the revenue bond trustee until such revenue bonds were refunded by general obligation bonds in March 2001. Also included are associated bond costs: letter of credit fees, trustee fees, and remarketing agent fees applicable to the revenue bonds. Total principal, interest, and associated bond costs were then reduced by interest earned and collected by the revenue bond trustee. Amounts for years 2005 to 2010 include actual principal and interest on the general obligation bonds remaining to be paid. Debt service requirements on the City’s bonds will be paid from the City’s General Bond Retirement debt service fund. The City is fully capable of meeting the debt service requirements of these bonds.
NOTE I—PROPERTY LEASED TO OTHERS
The City leased to others in 1985, an office building known as the old, old post office. The City has no net investment in this lease because the City’s purchase price of $3 million for the building was entirely recovered by a lease payment received at the lease’s inception. The initial lease term is for 20 years with a 20-year renewal term at $100 per year. The lessee may then purchase the property at its then fair market value or continue to lease it for up to 55 additional years.
The City leases certain real property, together with buildings and improvements located thereon, to the Columbus Zoological Park Association (the Zoo). The lease, with annual rental payments of $10 per year, paid in a lump sum of $200 before the first anniversary date of the amended lease, is an extension of earlier leases that began in 1970. This current lease which commenced in 2003 expires December 31,
110 NOTE I—PROPERTY LEASED TO OTHERS (continued)
2023. The Zoo uses and occupies the premises solely for zoological, conservation, educational, research, and recreational purposes. Animals at the Zoo are not owned by the City.
In 2002, the City and Columbus Urban Growth Corporation (“CUGC”), a not for profit corporation under Chapter 1702 of the Ohio Revised Code and a qualified 501(C)(3) entity under the Internal Revenue Code, undertook discussions on the possible redevelopment of 84.311 acres of the vacated Northland Mall property. At the request of the City, CUGC negotiated the purchase of the property from the three landowners. In January and February 2003 pursuant to three (3) separate purchase contracts, the City purchased the 84.311-acre site from CUGC, and an affiliate of CUGC, Northland Town Center LLC. The total purchase price for the redevelopment site was $9.5 million, which reflected the total of CUGC’s and Northland Town Center, LLC’s purchase price, acquisition expenses and carrying costs. Under the terms of the purchase agreements CUGC and Northland Town Center retained possession of the site for up to two (2) years with the obligation to maintain the site and to pay utilities, taxes, and insurance.
At the time of purchase by the City, CUGC was under contract to sell 10.877 acres of the former Federated Department Store site to Northland Associates, LLC for $2 million. As part of the purchase from CUGC, the Northland Associates’ contract was assigned to and assumed by the City. As part of the obligation under the contract with Northland Associates, LLC, and as necessary for the future redevelopment of the remainder of the site, the City agreed in December 2003, to contract with CUGC for $1.3 million to construct a new public road system to serve the site (this contract was subsequently increased by $150 thousand) and for $1.1 million to demolish certain site improvements (this contract was subsequently reduced by $150 thousand). On February 11, 2004, in accordance with the terms of the purchase contract, the City sold the 10.877 acres to Northland Associates, LLC., for the $2 million.
With a term commencing July 1, 2003, the City and CUGC entered into a 99 year lease, renewable forever, for the remaining 73.434 acres of the former Northland Mall site. Under the lease CUGC is obligated to maintain the Premises and pay all expenses (utilities, taxes, and insurance). CUGC is obligated during the term of the lease to pay, as rent, 90% of its cash flow, as defined in the lease, from its operations on the Premises.
In addition, CUGC has the option to purchase the Premises or any portion thereof. The Premises are subdivided into three zones, Frontage, Middle, and South, with a set minimum purchase price for each zone. The minimum purchase prices were calculated to reimburse the City its basis in the premises less acreage associated with future public roads needed for the redevelopment. The option price per acre beginning in the second year of the term equals the greater of the initial option price plus 1% for each year after the first year or 10% of net profit realized by CUGC on any resale.
In December of 2004, by Ordinance No. 2189-2004, the City authorized the sale of three parcels of the Premises to CUGC and the resale of these parcels by CUGC permitted whereby CUGC was to retain all proceeds to defer past and future redevelopment costs of the site. The three sales were completed in January of 2005.
See also Note H regarding assets leased to SWACO by the City.
NOTE J—LEASE COMMITMENTS AND LEASED ASSET
The City leases a significant amount of property and equipment under short term operating leases. Total payments on such leases for the year ended December 31, 2004 were approximately $5.3 million.
The City also leases a building under a capitalized lease. The cost of the building, $19.8 million, is included in the City’s capital assets used in governmental activities. The City has four options to extend this lease for an additional term of 10 years each under the same terms and conditions of the original leases.
111 NOTE J—LEASE COMMITMENTS AND LEASED ASSET (continued)
During 2004, the City entered into an agreement with its component unit, RiverSouth, for the lease of approximately 1.621 acres of land, as described in Note A. The lease is considered a capital lease and the land, valued at $2 million, is included in the City’s capital assets used in governmental activities. It is anticipated that this amount will be amortized over the remaining life of the bonds issued by RiverSouth.
The following is a schedule of future minimum lease payments under both capitalized leases together with the present value of the net minimum lease payments as of December 31, 2004. Capitalized lease amounts also appear in Note G.
Year ending December 31: (in thousands) 2005 $ 916 2006 - 2007 168 2008 168 2009 169 2010 – 2014 843 2015 – 2019 843 2020 – 2024 843 Total minimum lease payments $ 3,950 Less—amount representing interest at 10.5% for the leased building and 4.81% for the leased land (1,080) Present value of net minimum lease payments $ 2,870
NOTE K—PENSION PLANS
Police and fire-sworn personnel participate in the statewide Ohio Police and Fire Pension Fund (OP&F). Substantially all other City employees participate in the statewide Ohio Public Employees Retirement System (OPERS). Both OP&F and OPERS are cost sharing multiple-employer public employee retirement systems administered by their respective Retirement Boards. The OP&F Board consists of 6 members elected by representative groups and 3 statutory members. The OPERS Board consists of 6 members elected by representative groups, 1 statutory member, and 4 appointed members. The total payroll for the City’s employees for the year ended December 31, 2004 was $428.8 million. Of this amount, $210.1 million was covered by OP&F, $212.6 million was covered by OPERS, and $6.1 million was not subject to pension benefit calculations.
Employer and employee required contributions to OP&F and OPERS are established by the Ohio Revised Code (ORC) and are based on percentages of covered employees’ gross salaries, as defined. In addition to paying the employer’s share as required by the ORC, the City pays a portion of the employee’s share.
Required contributions to OP&F and OPERS are used to fund pension obligations and health care programs. Rates required attributable to 2004 payroll costs are summarized as follows:
Percentage of covered payroll—January 1, 2004 to December 31, 2004 Employee share Employer Paid by City Paid by employee Total Share Total Police 6.5 3.5 10.0% 19.5% 29.5% Fire 6.5 3.5 10.0% 24.0% 34.0% OPERS: Full time 8.5 - 8.5% 13.55% 22.05% Part time 6.0 2.5 8.5% 13.55% 22.05%
112 NOTE K—PENSION PLANS (continued)
Police and Fire (OP&F)
OP&F has provided the following information to the City in order to assist the City in complying with Statement No. 27.
A. OP&F is a cost-sharing multiple-employer defined benefit pension plan.
B. OP&F provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries.
C. Authority to establish and amend benefits is provided by state statute per Chapter 742 of the ORC.
D. OP&F issues a stand-alone financial report. Interested parties may obtain a copy at www.op-f.org, by making a written request to OP&F at: 140 East Town Street, Columbus, Ohio 43215-5164, or by calling (614) 228-2975.
E. The ORC provides statutory authority for employee and employer contributions. The required contributions are: Employees Employer Police 10% 19.5% Fire 10% 24.0%
F. Required employer contributions are equal to 100% of the dollar amount billed to each employer. City data indicates the required amounts for the past five years have been:
Employee share Employee share Employer share Total paid Year paid by employee paid by City paid by City by City (in thousands) Police: 2004 $ 4,038 7,499 22,652 30,151 2003 3,756 6,975 20,927 27,902 2002 3,781 7,022 21,067 28,089 2001 3,782 7,024 21,072 28,096 2000 3,287 6,104 18,311 24,415 Fire: 2004 $ 3,308 6,159 22,722 28,881 2003 2,359 6,625 21,561 28,186 2002 1,268 7,185 20,286 27,471 2001 1,207 6,842 19,317 26,159 2000 1,223 6,929 19,565 26,494
Participants in OP&F may retire at age 48 with at least 25 years of credited service or at age 62 with at least 15 years of credited service and are entitled to an annual retirement benefit, payable in monthly installments for life, equal to 2.5% of annual earnings for each of the first 20 years of credited service, 2.0% for each of the next five years of credited service, and 1.5% for each year of service thereafter. However, this normal retirement benefit is not to exceed 72% of the member’s average annual salary of the three years during which the total earnings were greatest. Members become vested in certain benefits after 15 years of service at age 48 and become vested in full normal retirement benefits after 25 years of service. OP&F also provides a $1,000 lump-sum death benefits payment in addition to survivor and disability benefits. Benefits are established by the ORC.
113 NOTE K—PENSION PLANS (continued)
OP&F has provided the following information pertaining to other postemployment benefits for health care costs in order to assist the City in complying with Statement No. 12.
A. OP&F provides postretirement health care coverage to any person who receives or is eligible to receive a monthly benefit check or is a spouse or eligible dependent child of such person. An eligible dependent child is any child under the age of 18 whether or not the child is attending school or under the age of 22 if attending school full-time or on a 2/3 basis. The health care coverage provided by the retirement system is considered an Other Postemployment Benefits (OPEB) as described in GASB Statement No. 12. The Ohio Revised Code provides that the health care cost paid from the fund of OP&F shall be included in the employer’s contribution rate. The total police employer contribution rate is 19.5% of covered payroll and the total firefighter employer contribution rate is 24% of covered payroll.
B. The ORC provides the statutory authority allowing OP&F’s Board of Trustees (Board) to provide health care coverage to all eligible individuals.
C. Health care funding and accounting is on a pay-as-you-go basis. A percentage of covered payroll, as defined by the Board, is used to pay retiree health care expenses. The Board defined allocation was 7.75% of covered payroll in 2003 and 2004. In addition, since July 1, 1992 most retirees and survivors have been required to contribute a portion of the cost of their health care coverage through a deduction from their monthly benefit payment. Beginning in 2001, all retirees and survivors have monthly health care contributions.
D. The total health care expense paid by the retirement plan was $150,853,148 net of member contributions of $17,207,506 for the year ended December 31, 2003. Eligible benefit recipients totaled 13,662 for police and 10,474 for fire. Based on the portion of each employer’s contribution to OP&F set aside for funding of postretirement health care, as described above, the City’s contribution for 2004 allocated to postretirement care was approximately $9.0 million for police and $7.3 million for fire. OPERS
OPERS has provided the following information to the City in order to assist the City in complying with GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers (Statement No. 27). OPERS administers three separate pension plans as described below:
A. The Traditional Pension Plan (TP) – a cost-sharing multiple-employer defined benefit pension plan.
B. The Member-Directed Plan (MD) – a defined contribution plan in which the member invests both member and employer contributions (employer contributions vest over five years at 20% per year). Under the Member-Directed Plan members accumulate retirement assets equal to the value of member and (vested) employer contributions plus any investment earnings thereon.
C. The Combined Plan (CO) – a cost-sharing multiple-employer defined benefit pension plan. Under the Combined Plan employer contributions are invested by the retirement system to provide a formula retirement benefit similar in nature to the Traditional Plan benefit. Member contributions, the investment of which is self-directed by the members, accumulate retirement assets in a manner similar to the Member-Directed Plan.
D. OPERS provides retirement, disability, survivor and death benefits, and annual cost of living adjustments to members of the Traditional Plan and Combined Plans. Members of the Member- Directed Plan do not qualify for ancillary benefits.
E. Authority to establish and amend benefits is provided by state statute per Chapter 145 of the ORC.
114 NOTE K—PENSION PLANS (continued)
F. OPERS issues a stand-alone financial report. Interested parties may obtain a copy at www.opers.org, by making a written request to OPERS at: 277 East Town Street, Columbus, Ohio 43215-4642, or by calling (614) 222-6701 or 1-800-222-PERS (7377).
G. The ORC provides statutory authority for employee and employer contributions. The City’s employee contribution rate in 2004 was 8.5%. The City’s contribution rate, as an employer, was 13.55% of covered payroll.
H. Required employer contributions are equal to 100% of the dollar amount billed to each employer and must be extracted from the employer’s records.
City data indicates the required amounts for the past five years have been:
Employee share Employee share Employer share Total paid Paid by employee paid by City paid by City by City (in thousands) 2004 $ 221 17,851 28,809 46,660 2003 225 17,878 28,858 46,736 2002 268 17,444 28,713 46,157 2001 286 17,251 27,957 45,208 2000 314 16,455 21,200 37,655
Participants in OPERS may retire, at any age with 30 years of service, at age 60 with a minimum of five years of credited service, and at age 55 with a minimum of 25 years of service. Those individuals retiring with less than 30 years of service or less than age 65 receive reduced retirement benefits. Eligible employees are entitled to a retirement benefit, payable monthly for life, equal to 2.2% of their final average salary for each year of credited service up to 30 years. Employees are entitled to 2.5% of their final average salary for each year of service over 30 years. Final average salary is the employee’s average salary over the highest three years of earnings. Benefits fully vest upon reaching five years of service. OPERS also provides death and disability benefits. Benefits are established by the ORC.
OPERS has provided the following information pertaining to other postemployment benefits for health care costs in order to assist the City in complying with GASB Statement No. 12, Disclosure of Information on Postemployment Benefits Other Than Pension Benefits by State and Local Government Employers (Statement No. 12).
A. Ohio Public Employees Retirement System (OPERS) administers three separate pension plans: The Traditional Pension Plan (TP) – a cost sharing multiple-employer defined benefit pension plan; the Member-Directed Plan (MD) – a defined contribution plan; and the Combined Plan (CO) – a cost- sharing multiple-employer defined benefit pension plan that has elements of both a defined benefit and defined contribution plan.
OPERS provides retirement, disability, survivor, and post-retirement health care benefits to qualifying members of both the Traditional and the Combined Plans; however, health care benefits are not statutorily guaranteed. Members of the Member-Directed Plan do not qualify for ancillary benefits, including post-employment health care coverage.
In order to qualify for post-retirement health care coverage, age and service retirees must have 10 or more years of qualifying Ohio service credit. Health care coverage for disability recipients and primary survivor recipients is available. The health care coverage provided by the Retirement System is considered an Other Post-employment Benefit (OPEB) as described in GASB Statement No. 12.
115 NOTE K—PENSION PLANS (continued)
A portion of each employer’s contribution to OPERS is set aside for the funding of post-retirement health care. The Ohio Revised Code provides statutory authority for employer contributions. The OPERS law enforcement program is separated into two divisions, law enforcement and public safety with separate employee contribution rates and benefits. The 2004 employer contribution rate for local government employer units was 13.55% of covered payroll and 4.00% was used to fund health care for the year.
B. The Ohio Revised Code provides the statutory authority requiring public employers to fund postretirement health care through their contributions to OPERS.
C. Summary of Assumptions:
Actuarial Review. The assumptions and calculations below were based on the Systems latest Actuarial Review performed as of December 31, 2003.
Funding Method. An entry age normal actuarial cost method of valuation is used in determining the present value of OPEB. The difference between assumed and actual experience (actuarial gains and losses) becomes part of unfunded actuarial accrued liability.
Assets Valuation Method. All investments are carried at market value. For actuarial valuation purposes, a smoothed market approach is used. Under this approach assets are adjusted annually to reflect 25% of unrealized market appreciation or depreciation on investment assets.
Investment Return. The investment assumption rate for 2003 was 8.00%.
Active Employee Total Payroll. An annual increase of 4.00% compounded annually is the base portion of the individual pay increase assumption. This assumes no change in the number of active employees. Additionally, annual pay increases, over and above the 4.00% base increase, were assumed to range from .50% to 6.3%.
Health Care. Health care costs were assumed to increase at the projected wage inflation rate plus an additional factor ranging from 1.0% to 6.0% for the next 8 years. In subsequent years (9 and beyond) health care costs were assumed to increase at 4.00% (the projected wage inflation rate).
D. OPEB are advanced-funded on an actuarially determined basis. The following disclosures are required:
1. The number of active contributing participants in the Traditional Pension and Combined Plans at year end 2004 was 369,885.
2. The City’s contribution used to fund OPEB was $8.5 million.
3. $10.5 billion represents the actuarial value of the Retirement System’s net assets available for OPEB at December 31, 2003.
4. The actuarially accrued liability and the unfunded actuarial accrued liability, based on the actuarial cost method used, were $26.9 billion and $16.4 billion, respectively.
E. OPERS Board adopts a Health Care Preservation Plan:
On September 9, 2004 the OPERS Retirement Board adopted a Health Care Preservation Plan (HCPP) with an effective date of January 1, 2007. The HCPP restructures OPERS’ health care coverage to improve the financial solvency of the fund in response to skyrocketing health care costs.
116 NOTE K—PENSION PLANS (continued)
Under the HCPP, retirees eligible for health care coverage will receive a graded monthly allocation based on their years of service at retirement. The Plan incorporates a cafeteria approach, offering a broad range of health care options that allow benefit recipients to use their monthly allocation to purchase health care coverage customized to meet their individual needs. If the monthly allocation exceeds the cost of the options selected, the excess is deposited into a Retiree Medical Account that can be used to fund the future health care expenses.
There are no post-employment benefits provided by the City other than those provided through OPERS and OP&F.
The liability for past service costs at the time OPERS was established was assumed by the State of Ohio; therefore, it is not a liability of the City. The liability for past service costs at the time OP&F was established was paid by the City to OP&F in January 1994. The City is current on all of its required pension fund contributions.
NOTE L—INCOME TAXES
The City levies a tax of 2% on substantially all income earned within the City. In addition, residents of the City are required to pay City income tax on income they earn outside the City. However, a credit is allowed for income taxes paid to other municipalities.
Employers within the City are required to withhold income tax on employees' compensation and remit this tax to the City semimonthly, monthly, or quarterly, depending upon the amounts withheld. Corporations and other individual taxpayers are required to pay their estimated tax quarterly and file a declaration annually.
For the governmental fund financial statements, the City recognizes as revenue income tax received within 60 days after year end applicable to taxpayer liabilities for periods prior to the year end net of an allowance for income tax refunds. These taxes are considered both measurable and available whereas all other income taxes are recognized as revenue when received. The City has consistently followed this practice for many years.
Receivables and deferred revenues have been recorded in the General and Special Income Tax fund in the amount of $40.695 million and $13.565 million, respectively, for the estimated income tax due to the City for 2004 and prior tax years, but not collected within the available period.
NOTE M—PROPERTY TAXES
Property taxes include amounts levied against all real, public utility, and tangible personal (used in business) property located in the City.
Real property taxes and public utility taxes collected during 2004 were levied after October 1, 2003 on the assessed value listed as of January 1, 2003, the lien date. One half of these taxes were due January 20, 2004 with the remaining balance due on June 20, 2004. Tangible personal property taxes attach as a lien and were levied on January 1, 2004. One half of this tax was due on April 30, 2004 and the remaining balance was due on September 20, 2004.
Assessed values on real property are established by state law at 35% of appraised market value. A revaluation of all property is required to be completed every sixth year. The last revaluation was completed in 1999. Tangible personal property assessments are 25% of true value (true values are based on cost and established by the State of Ohio). The assessed value upon which the 2004 levy was based was approximately $14.489 billion. The assessed value for 2004, upon which the 2005 levy will be based, is approximately $14.719 billion.
117 NOTE M—PROPERTY TAXES (continued)
Ohio law prohibits taxation of property from all taxing authorities within a county in excess of 1% of assessed value without a vote of the people. Under current procedures, the City's share is .314% (3.14 mills) of assessed value. Increases in the property tax rate are restricted only by voter willingness to approve such increases.
The County Treasurers collect property taxes on behalf of all taxing districts in the counties, including the City of Columbus. The County Auditors periodically remit to the City its portion of the taxes collected. Property taxes may be paid on either an annual or semiannual basis. Current tax collections for the year ended December 31, 2004 were 95.1% (95.2% in 2003) of the tax levy.
Property taxes levied in 2004 but not due for collection until 2005 are recorded in the General Fund as taxes receivable and deferred revenues at December 31, 2004 in the amount of $45.8 million.
NOTE N—DEFICIT FUND EQUITIES
At December 31, 2004, the Recreation & Parks Operations Special Revenue Fund and the Recreation Debt Service Fund had deficits of $174 thousand and $4.358 million, respectively. These deficits will be eliminated by future charges for services or bond proceeds.
Fund balance deficits may be budgeted for and exist on the City's budgetary basis of accounting for certain funds. These fund balance deficits exist because encumbrances are recorded against certain accounts receivable that are not recognized as revenue on the budget basis of accounting.
NOTE O—MISCELLANEOUS REVENUES For the year ended December 31, 2004, miscellaneous revenues in the fund financial statements consisted of the following: (in thousands) Other Special Governmental General Income Tax Funds Hotel/motel taxes $ 2,875 - 8,856 Refunds and reimbursements 3,008 - 3,631 Rent : SWACO 61,758 - - Other 96 229 210 Capital contribution - - 458 Payments in lieu of property taxes 9 - 5,904 Donations - - 1,360 HUD loan interest - - 676 City auto license tax - - 3,066 Commissions 8 - - Sale of assets - 268 2,592 CRAA - 5,524 - Electric kWh revenue 3,265 - - Other 36 - 4,728 $ 71,055 6,021 31,481
118 NOTE P—TRANSFERS
For the year ended December 31, 2004, transfers presented in conformity with generally accepted accounting principles (GAAP) consisted of the following: (in thousands)
Transfers in Governmental Business Type Total General Bond Special Other Activities Activities- Transfer General Retirement Income Governmental Internal Enterprise Out Fund Fund Tax Fund Funds Service Funds Fund General Fund: Recreation Operating $ 22,352 - - - 22,352 - - Health Operating 17,004 - - - 17,004 - - Other 320 - - - 320 - - Total General Fund 39,676 - - - 39,676 - -
Special Income Tax Fund: Bond premiums used for interest 12,712 - 12,712 - - - - Nonreciprocal interfund transfer to Storm Sewer (debt service) 2,407 - - - - - 2,407 Nonreciprocal interfund transfer to Electricity (debt service) 100 - - - - - 100 Tipping fees 11,318 11,318 - - - - - Other 9,256 1,731 7,525 - - - - Total Special Income Tax Fund 35,793 13,049 20,237 - - - 2,507 Other Governmental Funds: Special Revenue Funds 2,222 6 886 - 1,323 - 7 Nonmajor Debt Service Funds 10,113 - 2,818 4,483 2,812 - - Capital Projects Funds 40,176 - 479 6,968 32,729 - - Other ------Total Other Governmental Funds 52,511 6 4,183 11,451 36,864 - 7
Governmental Activities – Internal Service Funds: Internal Service Funds 2 - - - - 2 - Total Governmental Activities 127,982 13,055 24,420 11,451 76,540 2 2,514 Business Type Activities Electricity 102 - - - 102 - - Total Business Type Activities 102 - - - 102 - - Total Transfers $ 128,084 13,055 24,420 11,451 76,642 2 2,514
Transfers are used to move revenues from the fund with collection authorization to the General Bond Retirement fund as debt service principal and interest payments become due and to move unrestricted revenues to finance various programs that the City must account for in other funds in accordance with budgetary authorization, including amounts provided as subsidies and/or matching funds for various grant programs.
119 NOTE Q—JOINT VENTURES
COLUMBUS REGIONAL AIRPORT AUTHORITY On December 12, 2002 the City of Columbus, Ohio, the Columbus Municipal Airport Authority, and the County of Franklin, Ohio entered into the Port Authority Consolidation and Joinder Agreement. The effective date of the agreement was January 1, 2003. The agreement unites the operations of Columbus Municipal Airport Authority, created by the City in 1990, and the Rickenbacker Port Authority, created by the County in 1979 and dissolved by the County Commissioners via this action. The new entity is titled the Columbus Regional Airport Authority (CRAA). The board of directors of the CRAA is its governing body and consists of nine (9) members; four (4) appointed by the Mayor of the City of Columbus, four (4) by the County Commissioners of Franklin County and one (1) jointly by the Mayor and the County Commissioners.
Beginning January 1, 2003 the Columbus Regional Airport Authority (CRAA) is characterized as a Joint Venture of the City and the County whereas, the Columbus Municipal Airport Authority (CMAA) was reported as a component unit of the City through December 31, 2002.
Summary financial data of CRAA for the year ended December 31, 2004 are as follows:
(in thousands) Cash and cash equivalents, unrestricted $ 13,722 Other current assets, unrestricted 7,255 Cash and cash equivalents, restricted 62,140 Other investments, restricted 17,555 Other current assets, restricted 3,539 Capital assets, net of accumulated depreciation 437,206 Non-current investments, unrestricted 23,389 Non-current assets other than capital 6,856 Non-current investments, restricted 11,237 Total assets $ 582,899 Current liabilities payable from unrestricted assets $ 15,129 Current liabilities payable from restricted assets 14,257 Non-current liabilities 126,195 Total liabilities 155,581 Investment in capital assets net of related debt 309,121 Restricted net assets 89,378 Unrestricted net assets 28,819 Total net assets $ 427,318
Total revenues and capital contributions $ 102,174 Total expense (68,818) Increase in net assets 33,356
Net assets at beginning of year 393,962 Total net assets at end of year $ 427,318
120 NOTE Q—JOINT VENTURES (CONTINUED)
FRANKLIN PARK CONSERVATORY JOINT RECREATION DISTRICT As noted in Note A, the Franklin Park Conservatory Joint Recreation District (the Conservatory District) is considered a joint venture of the City and Franklin County (the County). The arrangement with the Conservatory District possesses all of the following characteristics to be classified as a joint venture. The Conservatory District:
* resulted from a contractual arrangement (City Resolution 109X-90 and Franklin County Resolution 79-90 pursuant to authority contained in Section 755.14(B) of the Ohio Revised Code);
* functions as a separate and specific activity from the City and the County;
* is governed by the City and the County, with neither entity in a position to unilaterally control the Conservatory District’s financial or operating policies; and
* involves an ongoing financial responsibility on the part of the City and the County.
The Conservatory District receives an annual operating subsidy from the City, subject to annual appropriation by the City’s Council. Financial statements of the Conservatory District may be obtained from the Conservatory District’s administration offices at 1777 East Broad Street, Columbus, Ohio 43203. Summary financial data for the year ended December 31, 2004 are as follows:
(in thousands) Cash and investments $ 1,033 Other current assets 393 Capital assets, net of accumulated depreciation 4,912 Other noncurrent assets 245 Total assets $ 6,583 Current liabilities $ 1,323 Noncurrent liabilities 81 Total liabilities 1,404 Investment in capital assets net of related debt 4,912 Restricted net assets 1,049 Unrestricted net assets (782) Total net assets $ 5,179
Total revenues (including City payments of $452,693) $ 5,061 Total expense (4,892) Income before depreciation 169 Depreciation expense (327) Capital contributions 84 Decrease in net assets $ (74)
The Conservatory District’s restricted net assets at December 31, 2004 are comprised of an expendable endowment of $888,219 and an investment of $160,798 at the Columbus Foundation, an Ohio not-for- profit corporation, for the purpose of furthering the Conservatory District’s mission. The Conservatory District has the right to suggest to the Columbus Foundation how these monies are to be expended.
121 NOTE Q—JOINT VENTURES (CONTINUED)
COLUMBUS/FRANKLIN COUNTY AFFORDABLE HOUSING TRUST CORPORATION Also, as noted in Note A, the Columbus/Franklin County Affordable Housing Trust Corporation (AHT) is considered a joint venture of the City and County. In its Audits of State and Local Governmental Units, with Conforming Changes as of May 1, 2001, both the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) recognizes an organization to be governmental if it has one or more of the following characteristics:
• “Popular election of officers or appointment (or approval) of a controlling majority of the members of the organization’s governing body by officials of one or more state or local governments.”
All members of AHT’s board of trustees are jointly appointed by the City’s Mayor and the County’s Commissioners.
• “The potential for unilateral dissolution by a government with the net assets reverting to the government.”
The contract between the City and AHT, in the event of its termination, calls for assets of AHT received from the City and assets of AHT acquired through the use of City funds to revert to the City.
• “The power to enact and enforce a tax levy.”
AHT does not have taxing authority.
Having two of the above characteristics AHT, therefore, is considered a joint venture of the City. AHT will continue to receive annual funding from the City as long as the current agreement continues. Summary financial data for the year ended December 31, 2004 are as follows:
(in thousands) Cash and cash equivalents $ 4,836 Other current assets 79 Capital assets, net of accumulated depreciation 12 Non-current assets other than capital 4,516 Total assets $ 9,443
Current liabilities $ 66 Non-current liabilities 11 Total liabilities 77
Investment in capital assets net of related debt 12 Restricted net assets 8,624 Unrestricted net assets 730 Total net assets $ 9,366
Total revenues (including City support of $988,966) $ 2,234 Total expense (750) Increase in net assets $ 1,484
122 NOTE R—COMPONENT UNITS
As described in Note A, the City has two discretely presented component units. The significant accounting disclosures for each of the component units follow.
COLUMBUS URBAN GROWTH CORPORATION (CUGC) CUGC, incorporated in 1996 as an Ohio not-for-profit corporation, was organized for the purpose of promoting commercial and industrial development and creating investment and job opportunities in Columbus inner city and economically depressed neighborhoods.
Significant Accounting Policies and Disclosures for CUGC CUGC financial statements are prepared on an accrual basis of accounting in accordance with generally accepted accounting principles as prescribed by the Financial Accounting Standards Boards Statements and Interpretations (FASB) and reports on a June 30th fiscal year end. All balances contained herein for CUGC are as of and for the year ended June 30, 2004. CUGC’s financials statements have been reformatted to a presentation compatible with the City’s financial statements.
Cash – CUGC maintains cash in financial institutions that may exceed federally insured amounts at times. CUGC’s cash balance at June 30, 2004 was $191,995.
Property Held for Development – Property held for development consists of properties that are currently under construction or rehabilitation ($5.276 million) and land available for sale ($770 thousand). These properties totaled $6.046 million at June 30, 2004 and are reported as property held for development on the City’s Statement of Net Assets.
Capital Assets – Capital assets are stated at cost. Depreciation is provided on a straight-line method over an estimated useful life of the assets. A summary of capital assets as of June 30, 2004 follows.
(in thousands) Building $ 11,978 Furniture and fixtures 141 Computers and equipment 115 Total capital assets 12,234
Less: accumulated depreciation 585 Total capital assets, net $ 11,649
Bonds and Notes Payable – CUGC is the owner of a 90,000 square-foot building within the West Edge development, which was financed with $10.5 million Series A and B Municipal Bonds. CUCC also holds certain interest bearing and non-interest bearing notes payable to various entities including the City, National City Bank and Fifth Third Bank. CUGC has a line of credit with National City Bank with a variable rate of interest of prime plus 1% for a maximum borrowing of $100 thousand. At June 30, 2004, the outstanding balance was $15 thousand. The following table shows the bonds and notes payable as of June 30, 2004. (in thousands) Line of credit $ 15 Bonds payable (including derivative of $149 thousand) 10,649 Notes payable: Due to primary government 4,480 Other 1,827 Total bonds and notes payable $ 16,971
123 NOTE R—COMPONENT UNITS (CONTINUED)
Projected amortization of bonds and notes payable are as follows: (in thousands) Bonds Notes June 1, Payable Payable 2004 $ 515 $ - 2005 570 1,277 2006 485 54 2007 540 43 2008 600 26 2009 and thereafter 7,790 4,907 Total 10,500 6,307 dd: Derivative at fair value 149 - Total bonds payable $ 10,649 $ 6,307
CUGC accounts for its interest rate swap agreement in accordance with Statement of Financial Accounting Standards (SFAS) No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended by SFAS No. 138, “Accounting for Certain Derivative Instruments and Certain Hedging Activities,” which requires all derivative instruments to be carried at fair value on the statement of financial position. CUGC designated its derivative instrument (interest rate swap) used for risk management into a hedging relationship in accordance with the requirements of the new standard. The derivative instrument used to hedge the variability of forecasted cash flows attributable to interest rate risk was designated in a cash flow hedge relationship.
On August 2, 2002 CUGC entered into an interest rate swap agreement with the intent of managing CUGC’s exposure to interest rate movements of future cash flows by effectively converting a portion of bonds payable from a variable rate to a fixed rate of 3.16% without the exchange of the underlying principal amounts.
The interest rate swap agreement is accounted for as a cash flow hedge and is recorded in the financial statements at its fair value with an offsetting charge to changes in net assets. The interest rate swap has a notional amount of $10.5 million and a maturity date of August 9, 2007. The “derivative at fair value” presented on CUGC’s statements in the amount of $148,699, has been reclassified to bonds payable on the City’s Statement of Net Assets.
Northland Properties – During fiscal year 2003, CUGC acquired and sold to the City the property known as the former Northland Mall. The acquisition began in November of 2002 and was completed by April of 2003. The sales agreement with the City, completed in April 2003, called for CUGC to assume the development responsibilities for the site as agent to the City. The sale price to the City was larger than the acquisition cost to cover the future expenses of acquisition, carrying costs, marketing costs, design and engineering, and environmental work. These excess amounts paid to CUGC by the City have been reflected as deferred revenue and recognized as development fee income as actual costs are incurred. The amount of development fees recognized in 2004 was approximately $396 thousand.
CUGC entered into an agreement with the City whereby CUGC, acting as agent to the City, would supervise and execute the demolition of buildings and the installation of infrastructure in connection with the Northland Properties. Expenses incurred and reimbursed by the City during 2004 approximated $853 thousand.
See Notes A and I for further disclosures related to CUGC and its relationship and transactions with the City. Complete financial statements of CUGC may be obtained from CUGC at 415 E. Main Street, Columbus, Ohio 43215.
124 NOTE R—COMPONENT UNITS (CONTINUED)
THE RIVERSOUTH AUTHORITY (RiverSouth) RiverSouth is a new community authority created by the City of Columbus pursuant to Chapter 349 of the Ohio Revised Code as a body corporate and politic. RiverSouth was created to govern the redevelopment and revitalization of a new community referred to as the RiverSouth District. The Downtown Development Corporation, a not-for-profit corporation, has been appointed Developer of the new community.
Significant Accounting Policies and Disclosures for RiverSouth The financial statements of the RiverSouth Authority have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.
Cash – RiverSouth had cash on deposit with the bond trustee in two accounts at December 31, 2004. The project fund held approximately $16.234 million to use for development projects, while the capitalized interest fund held approximately $4.386 million to pay interest on outstanding bonds through June 1, 2007. The balance is insured by FDIC up to $100,000 and the remaining amount, $20.520 million is uncollateralized and uninsured.
Bonds Payable – RiverSouth Area Redevelopment Bonds, 2004 Series A were issued in the amount of $37,870,000 to provide funds to pay the costs of acquiring and developing land and acquiring and constructing community facilities. These bonds are payable from the revenues, receipts and other moneys assigned under a Master Trust Agreement dated June 1, 2004 between the RiverSouth and US Bank National Association as Trustee (the Trustee), as supplemented by the First Supplemental Trust Agreement dated June 1 , 2004 (together, the Trust Agreement).
The revenues and receipts assigned by the Trust Agreement are primarily composed of certain rental payments to be paid to RiverSouth under the Lease with the City. The rental payments paid by the City to RiverSouth are from moneys specifically appropriated for such purpose and are to be the primary source of money to pay debt service. The obligation of the City to make rental payments is expressly made subject to the availability of annual appropriations for such purpose. Notwithstanding the requirement for annual appropriations of rental payments for the payment of debt service, the City has agreed that all such rental payments required to pay debt service will be included in the estimated budgets of the City. RiverSouth and the City contemplate that the supplemental agreements will make provision for rental payments to be paid to RiverSouth in amounts at least adequate to meet the debt service on the 2004 Series A bonds. Neither the project land nor the capital facilities to be financed with the bond proceeds are pledged to secure payment on the bonds. The first rental payments from the City are due December 1, 2007.
Principal and interest requirements to retire the RiverSouth’s outstanding debt at December 31, 2004 are: (in thousands) Principal Interest 2005 $ - 1,823 2006 - 1,823 2007 - 1,824 2008 - 1,824 2009 1,200 1,824 2010-2014 9,500 8,220 2015-2019 11,875 5,840 2020-2024 15,295 2,416 $ 37,870 25,594
See Notes A and J for further disclosures related to RiverSouth and its relationship and transactions with the City. Complete financial statements of RiverSouth may be obtained from The RiverSouth Authority at 20 East Broad Street, Suite 100, Columbus, Ohio 43215.
125 NOTE S—RESTATEMENT OF BEGINNING NET ASSETS FOR BUSINESS-TYPE ACTIVITIES
Prior Period Adjustment Subsequent to the issuance of the December 31, 2003 financial statements, the City identified two transactions that should have been reflected in those financial statements.
The City entered into a loan agreement with OWDA/EPA for the upgrade of wastewater treatment facilities wherein the City agreed to participate in the Ohio EPA’s Water Resource Restoration Sponsor Program (WRRSP). The agreement called for a loan to the City of $20.993 million with $15.993 million for use by the City and $5.0 million for use by the Columbus and Franklin County Metropolitan Park District (Metro Parks), a separate and distinct political subdivision of the State of Ohio.
During 2003, OWDA/EPA paid, directly to Metro Parks, $4.475 million under this agreement. The City was not notified of such payment until 2004, thus causing an understatement of the City’s liability at December 31, 2003. It should have been reported as bonds payable and other non-operating expense (contribution to Metro Parks) in the Sanitary Sewer Enterprise Fund. Therefore, net assets in the Sanitary Sewer Enterprise Fund and the Business-Type Activities were overstated by $4.475 million at December 31, 2003.
In addition, there were certain charges for services to Water and Sanitary Sewer Enterprise Fund customer accounts, applicable to December 2003, but not billed until 2004. Net assets and charges for services at and for the year ended December 31, 2003 were understated in the Water and Sanitary Sewer Enterprise Fund by $1.029 million and $1.321 million, respectively. Net assets for total Business-Type Activities were understated by $2.350 million at December 31, 2003.
Accordingly, the City’s 2004 financial statements reflect prior period adjustments to give retroactive effect to the matters discussed above. The effect of the adjustments is as follows:
(in thousands)
Business-Type Water Sanitary Sewer Activities Beginning Net Assets, as previously reported$ 168,814 $ 470,824 $ 730,811 Adjustment for OWDA loan to Metro Parks - (4,475) (4,475) Adjustment to Charges for Services 1,029 1,321 2,350 Beginning Net Assets, as restated$ 169,843 $ 467,670 $ 728,686
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REQUIRED SUPPLEMENTARY INFORMATION
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City of Columbus, Ohio Exhibit 9 Budgetary Comparison Schedule General Fund For the Year Ended December 31, 2004 (amounts expressed in thousands)
General Fund Variance— Budgeted Amounts Positive Original Final Actual (negative) Revenues: Income taxes $ 336,500 $ 340,800 $ 340,388 $ (412) Property taxes 45,768 45,793 46,065 272 Investment income 7,200 6,050 6,281 231 Licenses and permits 1,000 1,650 2,044 394 Shared revenues 55,965 55,307 55,925 618 Charges for services 34,490 37,415 37,929 514 Fines and forfeits 16,700 17,400 17,752 352 Electricity kilowatt tax – 3,250 3,265 15 Miscellaneous 4,120 63,456 63,841 385 Total revenues 501,743 571,121 573,490 2,369
Expenditures: Current: General government 59,034 58,891 58,410 481 Public service 36,025 35,247 34,836 411 Public safety 368,832 377,298 376,542 756 Development 17,015 16,545 16,438 107 Expenditures paid through county auditor 1,168 668 930 (262) Total expenditures 482,074 488,649 487,156 1,493
Excess (deficiency) of revenues over expenditures 19,669 82,472 86,334 3,862 Other financing sources (uses): Transfers in 25,100 25,850 25,756 (94) Transfers out (51,706) (69,631) (65,427) 4,204 Total other financing sources (uses) (26,606) (43,781) (39,671) 4,110 Excess (deficiency) of revenues and other financing sources over expenditures and other uses (6,937) 38,691 46,663 7,972 Fund balances at beginning of year 39,382 39,382 39,382 – Lapsed encumbrances 1,325 1,645 2,003 358 Fund balances (deficit) at end of year $ 33,770 $ 79,718 $ 88,048 $ 8,330
Adjustments necessary to convert the results of operations at end of year on the budget basis to the modified accrual basis (GAAP) are as follows:
Deficiency of revenues and other financing sources over expenditures and other uses per the Budgetary Comparison Schedule $46,663
(Increases) decreases from revenues: Received in cash during year but already accrued as receivables (GAAP) at December 31, 2003 (141,562) Accrued as receivables at December 31, 2004 but not recognized in budget 188,067 Deferred at December 31, 2003 but not recognized in budget 114,398 Deferred at December 31, 2004 but recognized in budget (150,700) (Increases) decreases from encumbrances: Expenditures of amounts encumbered during the year ended December 31, 2003 (14,896) Recognized as expenditures in the budget 13,614 (Increases) decreases from expenditures: Accrued as liabilities at December 31, 2003 recognized as expenditures (GAAP) but not in budget 33,777 Accrued as liabilities at December 31, 2004 (36,013) Unrealized loss on investments (2,235)
Net change in fund balance per the Statement of Revenues, Expenditures, and Changes in Fund Balance (Exhibit 4) $ 51,113
See notes to required supplementary information.
129 CITY OF COLUMBUS, OHIO
Notes to the Required Supplementary Information
December 31, 2004
NOTE A—BUDGETARY DATA
City Council follows the procedures outlined below in establishing expenditure budget data.
(1) Prior to November 15, the Mayor submits to City Council an estimate of the expenditures necessary to conduct the affairs of the City for the fiscal year commencing the following January 1.
(2) Budget estimates are distributed throughout the City (including newspapers and libraries) and public hearings are held to obtain taxpayers’ comments.
(3) Subsequent to January 1, and after publication of the proposed budget ordinances, the budget is legally enacted through passage of the ordinances. The budget specifies expenditure amounts by Object Level One for each division within each fund. The objects are (1) personal services, (2) materials and supplies, (3) contractual services, (4) debt principal payments, (5) other, (6) capital outlay, (7) interest on debt, and (10) transfers.
(4) Transfers of appropriations of less than $25,000 can be made between budget Object Level One within a division and fund without additional City Council action, but with responsible management approval. Transfers in excess of this amount require the approval of both City Council and the Mayor. Supplemental appropriations must be approved by City Council. During 2003, all appropriations were approved as required. Appropriations for general funds expenditures and transfers out, were as follows: (in thousands) Original budget Revisions Final budget
General $ 533,780 24,500 558,280
(5) The City maintains budgetary controls by not permitting expenditures to exceed appropriations at the Object Level One level for each division within each fund.
(6) Unencumbered appropriations lapse at year-end.
All General fund expenditures, except for expenditures paid through the county auditor, have annual expenditures budgeted by City Council. Revenues and expenditures paid through the county auditor are estimated by the City Auditor in conjunction with the annual budgeting process. However, this estimate is not included or required in the budget ordinance.
Revenues for the General fund are estimated by the City Auditor in conjunction with the annual budgeting process. However, this estimate is not included or required in the budget ordinance.
130 Notes to the Required Supplementary Information (continued)
The City’s budgetary process is based upon accounting for certain transactions on a basis other than GAAP. The major differences are:
(1) Revenues are recorded when received in cash (budget), as opposed to when susceptible to accrual (modified accrual). (2) Expenditures are recorded when encumbered or paid in cash (budget), as opposed to when the liability is incurred (modified accrual). (3) Encumbrances are recorded as the equivalent of expenditures (budget), as opposed to a reservation of fund balances (modified accrual).
131 City of Columbus, Ohio
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SUPPLEMENTARY INFORMATION
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City of Columbus, Ohio
Major Governmental Fundss
General Fund – the general operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund.
General Bond Retirement Fund – required by State statutes and accounts for all general obligation debt, except proprietary funds’ general obligation debt, of the City.
Special Income Tax Fund – used to account for 25% of income tax collections set aside for debt service and related expenditures.
135
City of Columbus, Ohio Exhibit A-1 Schedule of Expenditures-Budget and Actual General Fund Budget Basis Year Ended December 31, 2004 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Expenditures Current General Government City council Personal services $ 2,362,951 $ 2,188,951 $ 2,171,835 $ 17,116 Materials and supplies 20,000 20,000 12,948 7,052 Contractual services 1,601,314 1,709,314 1,666,339 42,975 Total city council 3,984,265 3,918,265 3,851,122 67,143
City auditor Personal services 1,883,878 1,854,878 1,833,911 20,967 Materials and supplies 32,750 32,750 25,806 6,944 Contractual services 1,959,293 2,231,293 2,225,444 5,849 Capital outlay - 317,405 317,405 - Total city auditor 3,875,921 4,436,326 4,402,566 33,760
Income tax Personal services 4,772,186 4,737,186 4,695,529 41,657 Materials and supplies 47,100 47,100 44,291 2,809 Contractual services 1,573,337 1,450,337 1,387,702 62,635 Total income tax 6,392,623 6,234,623 6,127,522 107,101
City treasurer Personal services 675,580 687,427 686,379 1,048 Materials and supplies 4,000 17,711 17,617 94 Contractual services 246,563 145,942 142,228 3,714 Other - 50 50 - Total city treasurer 926,143 851,130 846,274 4,856
Parking violations bureau Personal services 1,900,570 2,018,909 2,009,275 9,634 Materials and supplies 27,655 20,655 20,353 302 Contractual services 780,447 598,781 591,128 7,653 Other 12,000 11,000 10,977 23 Total parking violations bureau 2,720,672 2,649,345 2,631,733 17,612
City attorney Personal services 8,145,387 8,061,498 8,020,807 40,691 Materials and supplies 103,500 166,064 163,100 2,964 Contractual services 647,265 622,416 611,278 11,138 Total city attorney 8,896,152 8,849,978 8,795,185 54,793
Real estate Personal services 312,901 323,205 323,205 - Materials and supplies 5,373 5,373 4,891 482 Contractual services 9,900 6,396 3,551 2,845 Total real estate 328,174 334,974 331,647 3,327 (Continued)
136 City of Columbus, Ohio Exhibit A-1 (continued) Schedule of Expenditures-Budget and Actual General Fund Budget Basis Year Ended December 31, 2004 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Municipal court judges Personal services $ 9,961,695 $ 10,302,695 $ 10,261,002 $ 41,693 Materials and supplies 58,800 53,500 49,389 4,111 Contractual services 1,407,685 1,409,485 1,409,315 170 Total municipal court judges 11,428,180 11,765,680 11,719,706 45,974
Municipal court clerk Personal services 7,635,619 8,055,994 8,048,551 7,443 Materials and supplies 171,170 151,170 150,977 193 Contractual services 749,161 649,161 645,981 3,180 Total municipal court clerk 8,555,950 8,856,325 8,845,509 10,816
Civil service commission Personal services 2,196,076 2,259,124 2,256,353 2,771 Materials and supplies 29,977 25,477 24,114 1,363 Contractual services 368,846 349,746 332,493 17,253 Other - - - - Total civil service commission 2,594,899 2,634,347 2,612,960 21,387
Human resources Personal services 1,223,163 1,131,693 1,103,468 28,225 Materials and supplies 29,496 24,396 23,418 978 Contractual services 620,618 397,524 392,028 5,496 Total human resources 1,873,277 1,553,613 1,518,914 34,699
Telecommunications Personal services 418,400 419,761 414,479 5,282 Materials and supplies 2,702 902 384 518 Contractual services 87,664 40,964 29,910 11,054 Total telecommunications 508,766 461,627 444,773 16,854
Mayor Personal services 1,811,847 1,724,717 1,707,456 17,261 Materials and supplies 12,116 6,616 4,480 2,136 Contractual services 721,380 523,382 513,244 10,138 Other 250 250 - 250 Total mayor 2,545,593 2,254,965 2,225,180 29,785
Community relations commission Personal services 504,973 501,873 501,531 342 Materials and supplies 6,836 5,336 4,912 424 Contractual services 126,445 62,345 55,833 6,512 Total community relations comm. 638,254 569,554 562,276 7,278 (Continued)
137 City of Columbus, Ohio Exhibit A-1 (continued) Schedule of Expenditures-Budget and Actual General Fund Budget Basis Year Ended December 31, 2004 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Equal business opportunity office Personal services $ 740,245 $ 809,883 $ 809,497 $ 386 Materials and supplies 6,808 6,808 5,000 1,808 Contractual services 133,123 79,245 77,021 2,224 Total equal business opportunity 880,176 895,936 891,518 4,418
Finance Personal services 2,231,786 2,245,560 2,243,000 2,560 Materials and supplies 20,272 18,172 14,905 3,267 Contractual services 633,146 360,326 345,665 14,661 Total finance 2,885,204 2,624,058 2,603,570 20,488
Total general government 59,034,249 58,890,746 58,410,455 480,291
Public service Service director Personal services 1,222,928 1,139,628 1,123,972 15,656 Materials and supplies 4,135 2,635 2,633 2 Contractual services 161,155 46,255 46,243 12 Total service director 1,388,218 1,188,518 1,172,848 15,670
Refuse collection Personal services 12,046,879 12,132,942 12,023,184 109,758 Materials and supplies 134,306 97,706 85,891 11,815 Contractual services 8,720,802 8,503,202 8,480,097 23,105 Other 70,000 74,200 66,120 8,080 Total refuse collection 20,971,987 20,808,050 20,655,292 152,758
Fleet Capital outlay 2,518,002 1,543,002 1,467,630 75,372 Total fleet 2,518,002 1,543,002 1,467,630 75,372
Facilities management Personal services 5,620,770 4,965,773 4,965,772 1 Materials and supplies 362,479 294,949 287,375 7,574 Contractual services 5,148,041 6,432,580 6,273,228 159,352 Other 16,000 5,750 5,000 750 Capital outlay - 8,430 8,430 - Total facilities management 11,147,290 11,707,482 11,539,805 167,677
Total public service 36,025,497 35,247,052 34,835,575 411,477 (Continued)
138 City of Columbus, Ohio Exhibit A-1 (continued) Schedule of Expenditures-Budget and Actual General Fund Budget Basis Year Ended December 31, 2004 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Public safety Safety director Personal services $ 771,070 $ 817,311 $ 817,195 $ 116 Materials and supplies 4,400 4,400 4,200 200 Contractual services 12,634,162 11,565,162 11,555,289 9,873 Other - - - - Capital outlay - 8,000 6,582 1,418 Total safety director 13,409,632 12,394,873 12,383,266 11,607
Communications Personal services 430,264 417,789 365,535 52,254 Total communications 430,264 417,789 365,535 52,254
Police Personal services 188,084,594 189,742,918 189,103,229 639,689 Materials and supplies 3,948,373 3,937,773 3,916,901 20,872 Contractual services 9,705,648 13,005,156 13,002,340 2,816 Other 225,000 849,120 826,370 22,750 Capital outlay 97,200 75,000 74,531 469 Total police 202,060,815 207,609,967 206,923,371 686,596
Fire Personal services 143,214,994 145,827,766 145,827,766 - Materials and supplies 3,615,631 3,436,031 3,434,808 1,223 Contractual services 6,077,962 7,360,837 7,360,837 - Other 22,500 250,344 246,834 3,510 Capital outlay - - - - Total fire 152,931,087 156,874,978 156,870,245 4,733
Total public safety 368,831,798 377,297,607 376,542,417 755,190
Development Development administration Personal services 1,577,523 1,528,861 1,528,861 - Materials and supplies 38,948 23,748 20,403 3,345 Contractual services 696,446 462,608 433,192 29,416 Other 225,000 22,500 22,428 72 Total development administration 2,537,917 2,037,717 2,004,884 32,833 (Continued)
139 City of Columbus, Ohio Exhibit A-1 (continued) Schedule of Expenditures-Budget and Actual General Fund Budget Basis Year Ended December 31, 2004 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual Amounts (Negative) Economic Development Personal services $ 140,596 $ 146,102 $ 145,673 $ 429 Materials and supplies 9,279 3,479 2,989 490 Contractual services 558,168 539,768 539,336 432 Other 2,598,655 2,259,355 2,259,265 90 Total economic development 3,306,698 2,948,704 2,947,263 1,441
Neighborhood Services Personal services 5,225,223 5,317,570 5,302,920 14,650 Materials and supplies 122,768 63,068 59,097 3,971 Contractual services 3,266,654 3,324,354 3,291,856 32,498 Other 10,000 127,500 127,500 - Total neighborhood services 8,624,645 8,832,492 8,781,373 51,119
Planning Personal services 689,814 644,514 642,184 2,330 Materials and supplies 17,234 9,634 8,728 906 Contractual services 99,693 68,093 61,877 6,216 Total planning 806,741 722,241 712,789 9,452
Housing Personal services 186,515 181,515 169,984 11,531 Materials and supplies 1,000 500 - 500 Contractual services 1,551,393 1,822,393 1,821,314 1,079 Total housing 1,738,908 2,004,408 1,991,298 13,110
Total Development 17,014,909 16,545,562 16,437,607 107,955
Expenditures paid through county auditor 1,168,000 668,000 930,232 (262,232)
Total expenditures $ 482,074,453 $ 488,648,967 $ 487,156,286 $ 1,492,681
140 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit A-2 Changes in Fund Balance - Budget and Actual General Bond Retirement Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 58,110 $ 58,110 $ 58,110 $ - Special assessments 89,200 89,200 89,200 - Miscellaneous 82,942,989 82,942,989 82,942,989 - Total revenues 83,090,299 83,090,299 83,090,299 - Expenditures Current General government Sinking fund trustees Personal services 184,000 184,000 170,606 13,394 Materials and supplies 1,000 1,000 189 811 Contractual services 13,000 13,000 4,737 8,263 Other - 195,500 195,500 - Capital outlay 2,000 2,000 - 2,000 Total sinking fund trustees 200,000 395,500 371,032 24,468 Total general government 200,000 395,500 371,032 24,468
Debt service Principal retirement and payment of obligation under capitalized lease 132,908,762 149,638,158 149,638,158 - Interest and fiscal charges 59,169,042 58,012,586 58,012,586 - Total debt service 192,077,804 207,650,744 207,650,744 - Total expenditures 192,277,804 208,046,244 208,021,776 24,468
Excess (deficiency) of revenues over expenditures (109,187,505) (124,955,945) (124,931,477) 24,468
Other financing sources (uses) Operating transfers in 124,781,553 124,781,553 124,781,553 -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 15,594,048 (174,392) (149,924) 24,468 Fund balance at beginning of year 3,272,965 3,272,965 3,272,965 - Lapsed encumbrances - - - - Fund balance at end of year $ 18,867,013 $ 3,098,573 $ 3,123,041 $ 24,468
141 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit A-3 Changes in Fund Balance - Budget and Actual Special Income Tax Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Income taxes $ 113,462,721 $ 113,462,721 $ 113,462,721 $ - Miscellaneous 17,326,329 17,326,329 17,326,329 - Total revenues 130,789,050 130,789,050 130,789,050 - Expenditures Current General government City auditor Contractual services - 75,000 75,000 - Total city auditor - 75,000 75,000 - City attorney Contractual services 125,000 125,000 - 125,000 Total city attorney 125,000 125,000 - 125,000 Finance Contractual services 232,100 232,100 74,569 157,531 Other - 545,500 254,486 291,014 Total finance 232,100 777,600 329,055 448,545 Total general government 357,100 977,600 404,055 573,545 Public service Facilities management Contractual services - 1,136,407 1,136,407 - Total facilities management - 1,136,407 1,136,407 - Refuse collection Contractual services 10,967,000 11,267,000 11,267,000 - Total refuse collection 10,967,000 11,267,000 11,267,000 - Total public service 10,967,000 12,403,407 12,403,407 - Public safety Police Contractual services - 398,423 398,423 - Total police - 398,423 398,423 - Total public safety - 398,423 398,423 - Debt service Principal retirement and payment of obligation under capitalized lease 1,120,000 1,155,384 1,155,384 - Interest and fiscal charges 137,025 137,025 137,025 - Total debt service 1,257,025 1,292,409 1,292,409 - Total expenditures 12,581,125 15,071,839 14,498,294 573,545 Excess of revenues over expenditures 118,207,925 115,717,211 116,290,756 573,545 Other financing sources (uses)
Debt Proceeds 11,880,000 11,880,000 11,880,000 - Operating transfers in 10,870,172 10,870,172 10,870,172 - Operating transfers out (107,334,097) (213,889,596) (157,281,885) 56,607,711 Total other financing sources (uses) (84,583,925) (191,139,424) (134,531,713) 56,607,711 Excess (deficiency) of revenues and other financing sources over expenditures and other uses 33,624,000 (75,422,213) (18,240,957) 57,181,256 Fund balance at beginning of year 107,026,777 107,026,777 107,026,777 - Lapsed encumbrances 32,999,045 32,999,045 32,999,045 - Fund balance at end of year $ 173,649,822 $ 64,603,609 $ 121,784,865 $ 57,181,256
142 City of Columbus, Ohio
Other Governmental Fundss
Special Revenue Funds – used to account for revenues derived from specific taxes, grants, or other restricted revenue sources. City ordinances or Federal and/or State statutes specify the uses and limitations of each Special Revenue Fund. The title of the funds is descriptive of the activities involved. The Special Revenue Funds are:
City Ordinances
• Cable Communications • Neighborhood Economic Dev. Fund • Fannie Mae Loans • Fire Quarter Master Incentive Travel Fund • Land Management • Development Services • Area Commissions • Health • Special Purpose • Municipal Motor Vehicle Tax • Mayor’s Education Charitable Trust • Treasury Investment Earnings • Columbus Community Relations • Golf Course Operations • Housing/Business Tax Incentives • Recreation & Parks Operations • Hester Dysart Paramedic Education • Private Grants • Hotel-Motel Tax • Urban Site Acquisition Loan Fund • Emergency Human Services • Collection Fees • Private Leisure Assistance for Youth • City Attorney Mediation Fund • Tree Replacement • Environmental Fund • Gatrell Arts Vocational Rehabilitation • Citywide Training Fund • Columbus Housing Fund
State Statutes
To Account for Shared Revenues, Fines, and Other Special Revenues
• Drivers Alcohol Treatment • County Auto License • Municipal Court Special Projects • Street Const. Maintenance & Repair • Municipal Court Clerk
Federal and/or State Statutes To Account for Grants and Subsidies
• HOME Program • Local Law Enforcement Block Grant • HOPE Program • Urban Development Action Grants • HUD Section 108 Loans • Community Development Act • Law Enforcement • Health Department Grants • General Government Grants • Recreation & Parks Grants
143
City of Columbus, Ohio
Other Governmental Funds (continued))
Debt Service Funds – used to account for the accumulation of resources for and payment of general obligation principal, interest, and related expenditures.
• Tax Increment Financing (TIF) funds • Recreation Debt Service Fund • Capitol South Debt Service Fund
Capital Project Funds – used to account for financial resources used for the acquisition and construction of major capital facilities other than those financed by proprietary funds and fiduciary funds. The titles of the funds are descriptive of the activities involved. The Capital Projects Funds classified by the primary sources of funding are:
Debt Proceeds
• Public Safety V–95 • Police Bonds 6-91 • Parks & Recreation V–95, V–99 • Brewery District • Refuse Collection V–95 • Streets & Traffic V-88 • Streets & Highways V–95, V–99 • Development Bonds • Health • Police V-88 • Engineering & Construction Bond • Geographic Information System Bond • Streets & Traffic Bond • Computer System Bond • Nationwide Development Bond • Information Services Bond • Lyra Gemini Polaris • Downtown Development • Facilities Management • Waggoner Road • Northwood Rd. Special Assessment • Polaris Interchange • Northland & Other Acquisitions • Northeast Corridor
Grant Revenue and Other Funding Sources
• Short North SID • Transportation Improvement Program • Neil Ave-Vine St Improvements • State Issue 2–Streets • Parks & Rec. Permanent Improvement • Federal State Highway Engineering • General Permanent Improvement • Street & Highway Improvement
144
City of Columbus, Ohio
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145
City of Columbus, Ohio Exhibit B-1 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Special Revenue
Cable HUD Section Fannie Mae Land Law HOME Program HOPE Program Communications 108 Loans Loans Management Enforcement ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 536 $ 10 $ 1,906 $ 187 $ 12 $ 295 $ 1,743 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) 1,082 89 3 723 - - 5 Due from other: Governments ------Funds 11 - 51 - - - -
146 Total assets $ 1,629 $ 99 $ 1,960 $ 910 $ 12 $ 295 $ 1,748
LIABILITIES Accounts payable 149 - 156 16 - 15 217 Due to other funds - - 76 - - - - Interfund payables ------Deferred revenue and other 390 - - 894 - - - Accrued wages and benefits 8 - 134 - - - - Total liabilities 547 - 366 910 - 15 217
FUND BALANCES Reserved for encumbrances 6,875 - 250 11,798 - - 255 Reserved for non-current loans receivable 1,082 89 - 723 - - - Unreserved, undesignated (6,875) 10 1,344 (12,521) 12 280 1,276 Total fund balances 1,082 99 1,594 - 12 280 1,531
Total liabilities and fund balances $ 1,629 $ 99 $ 1,960 $ 910 $ 12 $ 295 $ 1,748
(continued) City of Columbus, Ohio Exhibit B-2 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Special Revenue
Cable HUD Section Fannie Mae Land Law HOME Program HOPE Program Communications 108 Loans Loans Management Enforcement REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies 7,771 ------Investment income ------19 Licenses and permits - - 6,076 - - - - Shared revenues ------Charges for services - - 468 - - - 305 Fines and forfeits ------393 Miscellaneous 67 - 36 132 20 101 232 Total revenues 7,838 - 6,580 132 20 101 949
147 EXPENDITURES Current: General government 5,975 - 1,541 - - - - Public service ------Public safety - - 4,528 - - - 828 Development 1,929 12 - 132 - 33 - Health ------Recreation and parks ------Capital outlay - - 36 - - 12 129 Total expenditures 7,904 12 6,105 132 - 45 957 Excess(deficiency) of revenues over expenditures (66) (12) 475 - 20 56 (8)
OTHER FINANCING SOURCES (USES) Transfers in ------3 Transfers out - - (869) - (23) - (76) Proceeds from bonds and long-term notes issued ------Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance - - 87 - - - - Capital lease ------
Total other financing sources (uses) - - (782) - (23) - (73) Net change in fund balance (66) (12) (307) - (3) 56 (81) Fund balances—beginning of year 1,148 111 1,901 - 15 224 1,612 Fund balances—end of year $ 1,082 $ 99 $ 1,594 $ - $ 12 $ 280 $ 1,531
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Special Revenue
General Local Law Mayor's Municipal Government Area Enforcement Special Education Drivers Alcohol Court Special Grants Commissions Block Grant Purpose Charitable Trust Treatment Projects ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 2,438 $ 59 $ 755 $ 3,399 $ 398 $ 841 $ 887 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) 30 - 2 - 1 - - Due from other: Governments 3,448 ------Funds 26 - 1 - - - 11
148 Total assets $ 5,942 $ 59 $ 758 $ 3,399 $ 399 $ 841 $ 898
LIABILITIES Accounts payable 3,749 2 - 33 60 50 33 Due to other funds 2 - - 2 - - - Interfund payables ------Deferred revenue and other 2,133 - 758 - - - - Accrued wages and benefits 58 - - 2 - - 18 Total liabilities 5,942 2 758 37 60 50 51
FUND BALANCES Reserved for encumbrances 18,682 16 105 63 124 1 86 Reserved for non-current loans receivable 30 ------Unreserved, undesignated (18,712) 41 (105) 3,299 215 790 761 Total fund balances - 57 - 3,362 339 791 847
Total liabilities and fund balances $ 5,942 $ 59 $ 758 $ 3,399 $ 399 $ 841 $ 898
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Special Revenue
Mayor's General Local Law Education Municipal Government Area Enforcement Special Charitable Drivers Alcohol Court Special Grants Commissions Block Grant Purpose Trust Treatment Projects REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies 14,788 - 392 - - - - Investment income - - 8 - 5 - - Licenses and permits ------Shared revenues - - - - - 118 - Charges for services - - - 143 - - - Fines and forfeits - - - 16 - 68 1,158 Miscellaneous - 3 - 965 128 - 2 Total revenues 14,788 3 400 1,124 133 186 1,160
149 EXPENDITURES Current: General government 1,422 - - 77 250 222 870 Public service 447 ------Public safety 776 - 446 52 - 14 - Development 9,046 20 - - - - - Health 574 ------Recreation and parks - - - 115 - - - Capital outlay 4,469 - 22 269 - - - Total expenditures 16,734 20 468 513 250 236 870 Excess(deficiency) of revenues over expenditures (1,946) (17) (68) 611 (117) (50) 290
OTHER FINANCING SOURCES (USES) Transfers in 2,118 8 68 - 70 - - Transfers out (172) ------Proceeds from bonds and long-term notes issued ------Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) 1,946 8 68 - 70 - - Net change in fund balance - (9) - 611 (47) (50) 290 Fund balances—beginning of year - 66 - 2,751 386 841 557 Fund balances—end of year $ - $ 57 $ - $ 3,362 $ 339 $ 791 $ 847
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Special Revenue
Columbus Housing / Hester Dysart Private Leisure Municipal Court Community Business Tax Paramedic Hotel-Motel Emergency Assistance for Clerk Relations Incentives Education Tax Human Services Youth ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 2,863 $ 14 $ 106 $ 146 $ 90 $ 1,150 $ 45 Cash and investments with fiscal and escrow agents ------455 Investments ------Receivables (net of allowances for uncollectibles) ------Due from other: Governments ------Funds 18 - 2 - - - -
150 Total assets $ 2,881 $ 14 $ 108 $ 146 $ 90 $ 1,150 $ 500
LIABILITIES Accounts payable 69 - - 8 - 23 - Due to other funds ------Interfund payables ------Deferred revenue and other ------Accrued wages and benefits 44 - 5 - - - - Total liabilities 113 - 5 8 - 23 -
FUND BALANCES Reserved for encumbrances 61 - - 1 - 597 3 Reserved for non-current loans receivable ------Unreserved, undesignated 2,707 14 103 137 90 530 497 Total fund balances 2,768 14 103 138 90 1,127 500
Total liabilities and fund balances $ 2,881 $ 14 $ 108 $ 146 $ 90 $ 1,150 $ 500
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Special Revenue
Columbus Housing / Hester Dysart Emergency Private Leisure Municipal Court Community Business Tax Paramedic Hotel-Motel Human Assistance for Clerk Relations Incentives Education Tax Services Youth REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies ------Investment income - - - 2 - - 26 Licenses and permits - - 78 - - - - Shared revenues ------Charges for services ------Fines and forfeits 2,449 ------Miscellaneous 4 2 - - 6,900 967 65 Total revenues 2,453 2 78 2 6,900 967 91
151 EXPENDITURES Current: General government 2,099 - - - 6,714 - - Public service ------Public safety - - - 9 - - - Development - - 142 - - 959 - Health ------Recreation and parks ------73 Capital outlay 63 ------Total expenditures 2,162 - 142 9 6,714 959 73 Excess(deficiency) of revenues over expenditures 291 2 (64) (7) 186 8 18
OTHER FINANCING SOURCES (USES) Transfers in ------Transfers out (60) - - - (299) - - Proceeds from bonds and long-term notes issued ------Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) (60) - - - (299) - - Net change in fund balance 231 2 (64) (7) (113) 8 18 Fund balances—beginning of year 2,537 12 167 145 203 1,119 482 Fund balances—end of year $ 2,768 $ 14 $ 103 $ 138 $ 90 $ 1,127 $ 500
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Special Revenue Neighborhood Fire Quarter Gatrell Arts Economic Master Tree Vocational Columbus Development Incentive Development Urban Dev. Replacement Rehabilitation Housing Fund Fund Travel Fund Services Action Grants ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 106 $ - $ - $ 216 $ 28 $ 3,056 $ 860 Cash and investments with fiscal and escrow agents ------Investments - 33 - - - - - Receivables (net of allowances for uncollectibles) - - - - - 150 823 Due from other: Governments ------Funds - - - - - 514 -
152 Total assets $ 106 $ 33 $ - $ 216 $ 28 $ 3,720 $ 1,683
LIABILITIES Accounts payable 2 - - - - 91 614 Due to other funds - - - - - 9 - Interfund payables ------Deferred revenue and other ------194 Accrued wages and benefits - - - 3 - 706 - Total liabilities 2 - - 3 - 806 808
FUND BALANCES Reserved for encumbrances 35 - - 38 - 390 286 Reserved for non-current loans receivable ------823 Unreserved, undesignated 69 33 - 175 28 2,524 (234) Total fund balances 104 33 - 213 28 2,914 875
Total liabilities and fund balances $ 106 $ 33 $ - $ 216 $ 28 $ 3,720 $ 1,683
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Special Revenue
Neighborhood Fire Quarter Gatrell Arts Economic Master Tree Vocational Columbus Development Incentive Development Urban Dev. Replacement Rehabilitation Housing Fund Fund Travel Fund Services Action Grants REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies ------Investment income ------Licenses and permits - - - - - 13,781 - Shared revenues ------Charges for services - - - - - 6,645 - Fines and forfeits ------Miscellaneous 10 - 989 152 - 1,146 105 Total revenues 10 - 989 152 - 21,572 105
153 EXPENDITURES Current: General government ------Public service - - - - - 8,736 - Public safety - - - - 2 - - Development - - 989 65 - 14,101 204 Health ------Recreation and parks 4 2 - - - - - Capital outlay ------Total expenditures 4 2 989 65 2 22,837 204 Excess(deficiency) of revenues over expenditures 6 (2) - 87 (2) (1,265) (99)
OTHER FINANCING SOURCES (USES) Transfers in - - - - 20 - - Transfers out ------Proceeds from bonds and long-term notes issued ------Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) - - - - 20 - - Net change in fund balance 6 (2) - 87 18 (1,265) (99) Fund balances—beginning of year 98 35 - 126 10 4,179 974 Fund balances—end of year $ 104 $ 33 $ - $ 213 $ 28 $ 2,914 $ 875
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Special Revenue
Community Health Street Const. Municipal Treasury Development Department County Auto Maintenance & Motor Vehicle Investment Act Health Grants License Repair Tax Earnings ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 4,298 $ 2,140 $ 1,829 $ 228 $ 2,472 $ 2,927 $ 254 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) 12,863 20 - - 548 - - Due from other: Governments - - 519 1,350 12,542 1,533 - Funds 111 280 146 - 1,507 - -
154 Total assets $ 17,272 $ 2,440 $ 2,494 $ 1,578 $ 17,069 $ 4,460 $ 254
LIABILITIES Accounts payable 422 247 410 185 105 599 - Due to other funds 1 1 - - 85 - - Interfund payables ------Deferred revenue and other 2,232 - 1,829 1,350 12,298 1,533 - Accrued wages and benefits 205 508 255 - 913 - - Total liabilities 2,860 756 2,494 1,535 13,401 2,132 -
FUND BALANCES Reserved for encumbrances 5,966 1,172 1,796 - 281 1,185 - Reserved for non-current loans receivable 12,848 ------Unreserved, undesignated (4,402) 512 (1,796) 43 3,387 1,143 254 Total fund balances 14,412 1,684 - 43 3,668 2,328 254
Total liabilities and fund balances $ 17,272 $ 2,440 $ 2,494 $ 1,578 $ 17,069 $ 4,460 $ 254
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Special Revenue
Community Health Street Const. Municipal Treasury Development Department County Auto Maintenance & Motor Vehicle Investment Act Health Grants License Repair Tax Earnings REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies 11,596 - 12,449 - - - - Investment income 42 - 3 - 22 - 177 Licenses and permits - 1,936 - - 1,059 - - Shared revenues - - - 2,700 24,596 - - Charges for services 250 3,183 371 - 6,904 - - Fines and forfeits ------Miscellaneous 497 261 93 - 623 3,066 - Total revenues 12,385 5,380 12,916 2,700 33,204 3,066 177
155 EXPENDITURES Current: General government 1,101 ------Public service 288 - - 3,182 33,446 2,245 - Public safety ------Development 12,079 ------Health 283 22,448 13,096 - - - - Recreation and parks 234 ------Capital outlay 57 - - - 39 158 - Total expenditures 14,042 22,448 13,096 3,182 33,485 2,403 - Excess(deficiency) of revenues over expenditures (1,657) (17,068) (180) (482) (281) 663 177
OTHER FINANCING SOURCES (USES) Transfers in - 17,004 180 185 92 - - Transfers out - (180) - - (346) - - Proceeds from bonds and long-term notes issued ------Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) - 16,824 180 185 (254) - - Net change in fund balance (1,657) (244) - (297) (535) 663 177 Fund balances—beginning of year 16,069 1,928 - 340 4,203 1,665 77 Fund balances—end of year $ 14,412 $ 1,684 $ - $ 43 $ 3,668 $ 2,328 $ 254
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Special Revenue
Recreation & Urban Site Golf Course Parks Recreation & Acquisition City Attorney Operations Operations Parks Grants Private Grants Loan Fund Collection Fees Mediation ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 1,101 $ 667 $ 652 $ 413 $ 986 $ 168 $ 85 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) 26 - 2 - 4,800 - - Due from other: Governments - - 4,970 2 - - - Funds 74 449 146 2 - - -
156 Total assets $ 1,201 $ 1,116 $ 5,770 $ 417 $ 5,786 $ 168 $ 85
LIABILITIES Accounts payable 62 505 4,837 11 - 64 1 Due to other funds - 49 - - - 1 - Interfund payables ------Deferred revenue and other - - 652 - - - - Accrued wages and benefits 97 736 281 - - 3 - Total liabilities 159 1,290 5,770 11 - 68 1
FUND BALANCES Reserved for encumbrances 228 372 30,723 804 950 457 40 Reserved for non-current loans receivable ------Unreserved, undesignated 814 (546) (30,723) (398) 4,836 (357) 44 Total fund balances 1,042 (174) - 406 5,786 100 84
Total liabilities and fund balances $ 1,201 $ 1,116 $ 5,770 $ 417 $ 5,786 $ 168 $ 85
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Special Revenue
Recreation & Urban Site Golf Course Parks Recreation & Acquisition City Attorney Operations Operations Parks Grants Private Grants Loan Fund Collection Fees Mediation REVENUES Income taxes$ - $ - $ - $ - $ - $ 175 $ - Grants and subsidies - - 49,465 194 - - - Investment income - - 17 - - - - Licenses and permits ------Shared revenues ------Charges for services 4,129 4,800 650 - - - - Fines and forfeits - - - - - 521 - Miscellaneous 323 500 230 102 36 - 90 Total revenues 4,452 5,300 50,362 296 36 696 90
157 EXPENDITURES Current: General government - - - 137 - 765 6 Public service ------Public safety - - - 5 - - - Development ------Health - - - 239 - - - Recreation and parks 4,375 27,945 44,583 - - - - Capital outlay - 19 5,976 100 - - - Total expenditures 4,375 27,964 50,559 481 - 765 6 Excess(deficiency) of revenues over expenditures 77 (22,664) (197) (185) 36 (69) 84
OTHER FINANCING SOURCES (USES) Transfers in - 22,655 197 - - - - Transfers out - (197) - - - - - Proceeds from bonds and long-term notes issued ------Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) - 22,458 197 - - - - Net change in fund balance 77 (206) - (185) 36 (69) 84 Fund balances—beginning of year 965 32 - 591 5,750 169 - Fund balances—end of year $ 1,042 $ (174) $ - $ 406 $ 5,786 $ 100 $ 84
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Special Revenue Debt Service
Environmental Citywide Total Nonmajor Tuttle Crossing Nationwide Fund Training Fund Special Revenue Easton TIF Polaris TIF TIF Pen Site TIF ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 100 $ 5 $ 40,471 $ 7 $ 1,644 $ 332 $ 13 Cash and investments with fiscal and escrow agents - - 455 4,054 2,779 - - Investments - - 33 - - - - Receivables (net of allowances for uncollectibles) - - 21,167 20 20 - 3 Due from other: Governments - - 24,364 - - - - Funds - - 3,349 - - - -
158 Total assets $ 100 $ 5 $ 89,839 $ 4,081 $ 4,443 $ 332 $ 16
LIABILITIES Accounts payable 1 - 12,736 12 10 - - Due to other funds - - 226 - - - - Interfund payables ------Deferred revenue and other - - 24,263 - - - - Accrued wages and benefits - - 3,976 - - - - Total liabilities 1 - 41,201 12 10 - -
FUND BALANCES Reserved for encumbrances 4 - 83,644 - 2 - - Reserved for non-current loans receivable - - 15,595 - - - - Unreserved, undesignated 95 5 (50,601) 4,069 4,431 332 16 Total fund balances 99 5 48,638 4,069 4,433 332 16
Total liabilities and fund balances $ 100 $ 5 $ 89,839 $ 4,081 $ 4,443 $ 332 $ 16
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Special Revenue Debt Service
Environmental Citywide Total Nonmajor Tuttle Crossing Nationwide Fund Training Fund Special Revenue Easton TIF Polaris TIF TIF Pen Site TIF REVENUES Income taxes$ - $ - $ 175 $ - $ - $ - $ - Grants and subsidies - - 96,655 - - - - Investment income - - 321 55 52 - 13 Licenses and permits - - 22,930 - - - - Shared revenues - - 27,414 - - - - Charges for services - 4 27,852 - - - - Fines and forfeits 26 - 4,631 - - - - Miscellaneous - - 17,847 2,096 1,543 632 - Total revenues 26 4 197,825 2,151 1,595 632 13
159 EXPENDITURES Current: General government 1 - 21,180 10 124 3 - Public service - - 48,344 - 8 - - Public safety - - 6,660 - - - - Development - - 39,711 1,690 571 - - Health - - 36,640 - - - - Recreation and parks - - 77,331 - - - - Capital outlay - - 11,349 - - - - Total expenditures 1 - 241,215 1,700 703 3 - Excess(deficiency) of revenues over expenditures 25 4 (43,390) 451 892 629 13
OTHER FINANCING SOURCES (USES) Transfers in - - 42,600 - - - - Transfers out - - (2,222) (3,584) (23) (1,179) (1,571) Proceeds from bonds and long-term notes issued - - - 6,910 1,935 - 1,542 Refunding bonds issued - - - 29,520 2,100 - - Payment to refunded bond escrow agent - - - (32,470) - - - Redemption of refunded bonds - - - - (2,100) - - Premium on bond issuance - - 87 174 363 - - Capital lease ------
Total other financing sources (uses) - - 40,465 550 2,275 (1,179) (29) Net change in fund balance 25 4 (2,925) 1,001 3,167 (550) (16) Fund balances—beginning of year 74 1 51,563 3,068 1,266 882 32 Fund balances—end of year $ 99 $ 5 $ 48,638 $ 4,069 $ 4,433 $ 332 $ 16
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Debt Service
Nationwide Off Brewery Waggoner Recreation Sites TIF Miranova TIF Crewville TIF District TIF Road TIF Debt Service Capital South ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 975 $ 665 $ - $ 387 $ 223 $ 60 $ 12,505 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) 3 - - 5 1 - - Due from other: Governments ------Funds ------
160 Total assets $ 978 $ 665 $ - $ 392 $ 224 $ 60 $ 12,505
LIABILITIES Accounts payable ------Due to other funds ------Interfund payables - - - - - 4,418 - Deferred revenue and other ------Accrued wages and benefits ------Total liabilities - - - - - 4,418 -
FUND BALANCES Reserved for encumbrances - 25 - - 23 - 172 Reserved for non-current loans receivable ------Unreserved, undesignated 978 640 - 392 201 (4,358) 12,333 Total fund balances 978 665 - 392 224 (4,358) 12,505
Total liabilities and fund balances $ 978 $ 665 $ - $ 392 $ 224 $ 60 $ 12,505
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Debt Service
Nationwide Off Brewery Waggoner Recreation Sites TIF Miranova TIF Crewville TIF District TIF Road TIF Debt Service Capital South REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies ------Investment income 8 - - 18 2 - - Licenses and permits ------Shared revenues ------Charges for services - - - - - 425 - Fines and forfeits ------Miscellaneous 973 493 106 - 61 21 446 Total revenues 981 493 106 18 63 446 446
161 EXPENDITURES Current: General government 5 3 123 - - - 3 Public service ------Public safety ------Development - 354 - 3 103 - 133 Health ------Recreation and parks ------Capital outlay ------Total expenditures 5 357 123 3 103 - 136 Excess(deficiency) of revenues over expenditures 976 136 (17) 15 (40) 446 310
OTHER FINANCING SOURCES (USES) Transfers in ------1,500 Transfers out (749) - - (69) (17) (1,017) (1,904) Proceeds from bonds and long-term notes issued - - - - 281 - - Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) (749) - - (69) 264 (1,017) (404) Net change in fund balance 227 136 (17) (54) 224 (571) (94) Fund balances—beginning of year 751 529 17 446 - (3,787) 12,599 Fund balances—end of year $ 978 $ 665 $ - $ 392 $ 224 $ (4,358) $ 12,505
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Capital Projects
Total Parks & Streets & Nonmajor Debt Public Safety V- Recreation V- Refuse Highways V-95, Short North Service 95 95, V-99 Collection V-95 V-99 Health SID ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 16,811 $ 30,611 $ 20,289 $ 5,132 $ 73,423 $ 558 $ 151 Cash and investments with fiscal and escrow agents 6,833 ------Investments ------Receivables (net of allowances for uncollectibles) 52 ------Due from other: Governments ------Funds ------
162 Total assets $ 23,696 $ 30,611 $ 20,289 $ 5,132 $ 73,423 $ 558 $ 151
LIABILITIES Accounts payable 22 1,890 2,608 178 2,643 5 54 Due to other funds - - 68 - 1,154 - - Interfund payables 4,418 ------Deferred revenue and other ------Accrued wages and benefits ------Total liabilities 4,440 1,890 2,676 178 3,797 5 54
FUND BALANCES Reserved for encumbrances 222 14,581 12,524 3,420 39,687 378 27 Reserved for non-current loans receivable ------Unreserved, undesignated 19,034 14,140 5,089 1,534 29,939 175 70 Total fund balances 19,256 28,721 17,613 4,954 69,626 553 97
Total liabilities and fund balances $ 23,696 $ 30,611 $ 20,289 $ 5,132 $ 73,423 $ 558 $ 151
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Capital Projects
Total Parks & Streets & Nonmajor Debt Public Safety V- Recreation V- Refuse Highways V-95, Short North Service 95 95, V-99 Collection V-95 V-99 Health SID REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies ------Investment income 148 ------Licenses and permits ------Shared revenues ------Charges for services 425 ------Fines and forfeits ------Miscellaneous 6,371 - - - - - 55 Total revenues 6,944 - - - - - 55
163 EXPENDITURES Current: General government 271 ------Public service 8 ------Public safety ------Development 2,854 ------Health ------Recreation and parks ------Capital outlay - 20,612 13,120 5,140 26,729 345 256 Total expenditures 3,133 20,612 13,120 5,140 26,729 345 256 Excess(deficiency) of revenues over expenditures 3,811 (20,612) (13,120) (5,140) (26,729) (345) (201)
OTHER FINANCING SOURCES (USES) Transfers in 1,500 - - - 145 - 74 Transfers out (10,113) (1,678) (400) - (28,026) - - Proceeds from bonds and long-term notes issued 10,668 32,120 31,205 10,075 92,155 535 - Refunding bonds issued 31,620 ------Payment to refunded bond escrow agent (32,470) ------Redemption of refunded bonds (2,100) ------Premium on bond issuance 537 ------Capital lease ------
Total other financing sources (uses) (358) 30,442 30,805 10,075 64,274 535 74 Net change in fund balance 3,453 9,830 17,685 4,935 37,545 190 (127) Fund balances—beginning of year 15,803 18,891 (72) 19 32,081 363 224 Fund balances—end of year $ 19,256 $ 28,721 $ 17,613 $ 4,954 $ 69,626 $ 553 $ 97
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Capital Projects
Nationwide Neil Ave - Vine Northwood Rd Engineering & Streets & Development St Lyra Gemini Facilities Special Const Bond Traffic Bond Bond Improvements Polaris Management Assessment ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 114 $ 33 $ 844 $ 52 $ - $ 5,303 $ 43 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) ------Due from other: Governments ------Funds ------
164 Total assets $ 114 $ 33 $ 844 $ 52 $ - $ 5,303 $ 43
LIABILITIES Accounts payable - 32 - - - 98 - Due to other funds ------Interfund payables ------Deferred revenue and other ------Accrued wages and benefits ------Total liabilities - 32 - - - 98 -
FUND BALANCES Reserved for encumbrances - 1 288 - - 1,006 - Reserved for non-current loans receivable ------Unreserved, undesignated 114 - 556 52 - 4,199 43 Total fund balances 114 1 844 52 - 5,205 43
Total liabilities and fund balances $ 114 $ 33 $ 844 $ 52 $ - $ 5,303 $ 43
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Capital Projects
Nationwide Neil Ave - Vine Northwood Rd Engineering & Streets & Development St Lyra Gemini Facilities Special Const Bond Traffic Bond Bond Improvements Polaris Management Assessment REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies ------Investment income ------Licenses and permits ------Shared revenues ------Charges for services ------Fines and forfeits ------Miscellaneous ------Total revenues ------
165 EXPENDITURES Current: General government ------Public service ------Public safety ------Development ------Health ------Recreation and parks ------Capital outlay - 32 218 88 - 1,236 - Total expenditures - 32 218 88 - 1,236 - Excess(deficiency) of revenues over expenditures - (32) (218) (88) - (1,236) -
OTHER FINANCING SOURCES (USES) Transfers in - 33 - - - - - Transfers out - (42) - - (511) - - Proceeds from bonds and long-term notes issued - - - - - 5,455 - Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) - (9) - - (511) 5,455 - Net change in fund balance - (41) (218) (88) (511) 4,219 - Fund balances—beginning of year 114 42 1,062 140 511 986 43 Fund balances—end of year $ 114 $ 1 $ 844 $ 52 $ - $ 5,205 $ 43
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Capital Projects
Northland and Parks & Rec. Other Police Bonds 6- Brewery Streets & Development Permanent Acquisitions 91 District Traffic V-88 Bonds Police V-88 Improvement ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 1,101 $ 14 $ 1,467 $ 354 $ 1,218 $ 60 $ 198 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) ------Due from other: Governments ------Funds ------
166 Total assets $ 1,101 $ 14 $ 1,467 $ 354 $ 1,218 $ 60 $ 198
LIABILITIES Accounts payable 110 - - - 32 - - Due to other funds 3 ------Interfund payables ------Deferred revenue and other ------Accrued wages and benefits ------Total liabilities 113 - - - 32 - -
FUND BALANCES Reserved for encumbrances 660 14 1,467 354 156 60 101 Reserved for non-current loans receivable ------Unreserved, undesignated 328 - - - 1,030 - 97 Total fund balances 988 14 1,467 354 1,186 60 198
Total liabilities and fund balances $ 1,101 $ 14 $ 1,467 $ 354 $ 1,218 $ 60 $ 198
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Capital Projects
Northland and Parks & Rec. Other Police Bonds Brewery Streets & Development Permanent Acquisitions 6-91 District Traffic V-88 Bonds Police V-88 Improvement REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies ------Investment income ------Licenses and permits ------Shared revenues ------Charges for services ------Fines and forfeits ------Miscellaneous 2,014 - - - - - 82 Total revenues 2,014 - - - - - 82
167 EXPENDITURES Current: General government ------Public service ------Public safety ------Development ------Health ------Recreation and parks ------Capital outlay 3,145 43 65 157 171 - 373 Total expenditures 3,145 43 65 157 171 - 373 Excess(deficiency) of revenues over expenditures (1,131) (43) (65) (157) (171) - (291)
OTHER FINANCING SOURCES (USES) Transfers in ------Transfers out (6,526) - - (67) (74) - - Proceeds from bonds and long-term notes issued 8,645 - - - 400 - - Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) 2,119 - - (67) 326 - - Net change in fund balance 988 (43) (65) (224) 155 - (291) Fund balances—beginning of year - 57 1,532 578 1,031 60 489 Fund balances—end of year $ 988 $ 14 $ 1,467 $ 354 $ 1,186 $ 60 $ 198
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Capital Projects
General Geographic Transportation Federal State Permanent Information Computer Information Improvement State Issue 2 - Highway Improvement System Bond System Bond Services Bonds Program Streets Engineering ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 1,369 $ 179 $ 22 $ 322 $ 14,887 $ 6,602 $ 4,323 Cash and investments with fiscal and escrow agents ------Investments ------Receivables (net of allowances for uncollectibles) ------Due from other: Governments - - - - 324 1,232 - Funds ------
168 Total assets $ 1,369 $ 179 $ 22 $ 322 $ 15,211 $ 7,834 $ 4,323
LIABILITIES Accounts payable 81 - 17 209 217 174 1,234 Due to other funds - - - - 11 7 32 Interfund payables ------Deferred revenue and other ------Accrued wages and benefits ------Total liabilities 81 - 17 209 228 181 1,266
FUND BALANCES Reserved for encumbrances 307 140 5 10 15,909 1,914 11,428 Reserved for non-current loans receivable ------Unreserved, undesignated 981 39 - 103 (926) 5,739 (8,371) Total fund balances 1,288 179 5 113 14,983 7,653 3,057
Total liabilities and fund balances $ 1,369 $ 179 $ 22 $ 322 $ 15,211 $ 7,834 $ 4,323
(continued) City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Capital Projects
General Geographic Transportation Federal State Permanent Information Computer Information Improvement State Issue 2 - Highway Improvement System Bond System Bond Services Bonds Program Streets Engineering REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ - Grants and subsidies - - - - 4,137 3,491 6,626 Investment income ------Licenses and permits ------Shared revenues ------Charges for services ------Fines and forfeits ------Miscellaneous 628 - - - - - 2,819 Total revenues 628 - - - 4,137 3,491 9,445
169 EXPENDITURES Current: General government ------Public service ------Public safety ------Development ------Health ------Recreation and parks ------Capital outlay 1,184 378 179 1,057 5,039 7,024 10,119 Total expenditures 1,184 378 179 1,057 5,039 7,024 10,119 Excess(deficiency) of revenues over expenditures (556) (378) (179) (1,057) (902) (3,533) (674)
OTHER FINANCING SOURCES (USES) Transfers in 77 - - - 13,100 10,680 4,217 Transfers out (52) - - (479) (145) (190) (486) Proceeds from bonds and long-term notes issued - - - 870 - 696 - Refunding bonds issued ------Payment to refunded bond escrow agent ------Redemption of refunded bonds ------Premium on bond issuance ------Capital lease ------
Total other financing sources (uses) 25 - - 391 12,955 11,186 3,731 Net change in fund balance (531) (378) (179) (666) 12,053 7,653 3,057 Fund balances—beginning of year 1,819 557 184 779 2,930 - - Fund balances—end of year $ 1,288 $ 179 $ 5 $ 113 $ 14,983 $ 7,653 $ 3,057
(continued) City of Columbus, Ohio Exhibit B-1 (continued) Combining Balance Sheet Nonmajor Governmental Funds December 31, 2004 (amounts expressed in thousands)
Capital Projects
Street & Total Nonmajor Highway Downtown Waggoner Polaris Northeast Total Nonmajor Governmental Improvement Development Road Interchange Corridor Capital Projects Funds ASSETS Cash and cash equivalents: Cash and investments with treasurer$ 3,706 $ 955 $ - $ 3,126 $ 263 $ 176,719 $ 234,001 Cash and investments with fiscal and escrow agents ------7,288 Investments ------33 Receivables (net of allowances for uncollectibles) ------21,219 Due from other: Governments - - - - - 1,556 25,920 Funds ------3,349
170 Total assets $ 3,706 $ 955 $ - $ 3,126 $ 263 $ 178,275 $ 291,810
LIABILITIES Accounts payable - - - 27 - 9,609 22,367 Due to other funds - - - - - 1,275 1,501 Interfund payables ------4,418 Deferred revenue and other ------24,263 Accrued wages and benefits ------3,976 Total liabilities - - - 27 - 10,884 56,525
FUND BALANCES Reserved for encumbrances 18 - 280 22,134 - 126,869 210,735 Reserved for non-current loans receivable ------15,595 Unreserved, undesignated 3,688 955 (280) (19,035) 263 40,522 8,955 Total fund balances 3,706 955 - 3,099 263 167,391 235,285
Total liabilities and fund balances $ 3,706 $ 955 $ - $ 3,126 $ 263 $ 178,275 $ 291,810 City of Columbus, Ohio Exhibit B-2 (continued) Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Capital Projects
Street & Total Nonmajor Highway Downtown Waggoner Polaris Northeast Total Nonmajor Governmental Improvement Development Road Interchange Corridor Capital Projects Funds REVENUES Income taxes$ - $ - $ - $ - $ - $ - $ 175 Grants and subsidies - - - - - 14,254 110,909 Investment income ------469 Licenses and permits ------22,930 Shared revenues ------27,414 Charges for services ------28,277 Fines and forfeits ------4,631 Miscellaneous 1,402 - - - 263 7,263 31,481 Total revenues 1,402 - - - 263 21,517 226,286
171 EXPENDITURES Current: General government ------21,451 Public service ------48,352 Public safety ------6,660 Development ------42,565 Health ------36,640 Recreation and parks ------77,331 Capital outlay 114 2,356 1,419 13,377 - 113,976 125,325 Total expenditures 114 2,356 1,419 13,377 - 113,976 358,324 Excess(deficiency) of revenues over expenditures 1,288 (2,356) (1,419) (13,377) 263 (92,459) (132,038)
OTHER FINANCING SOURCES (USES) Transfers in 894 2,811 - 511 - 32,542 76,642 Transfers out - (1,500) - - - (40,176) (52,511) Proceeds from bonds and long-term notes issued - - 1,419 15,965 - 199,540 210,208 Refunding bonds issued ------31,620 Payment to refunded bond escrow agent ------(32,470) Redemption of refunded bonds ------(2,100) Premium on bond issuance ------624 Capital lease - 2,000 - - - 2,000 2,000
Total other financing sources (uses) 894 3,311 1,419 16,476 - 193,906 234,013 Net change in fund balance 2,182 955 - 3,099 263 101,447 101,975 Fund balances—beginning of year 1,524 - - - - 65,944 133,310 Fund balances—end of year $ 3,706 $ 955 $ - $ 3,099 $ 263 $ 167,391 $ 235,285 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-3 Changes in Fund Balance - Budget and Actual HOME Program Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Grants and subsidies $ 6,864,091 $ 6,864,091 $ 6,864,091 $ - Miscellaneous 180,318 180,318 180,318 - Total revenues 7,044,409 7,044,409 7,044,409 - Expenditures Current Development Housing Personal services 11,354 519,210 519,210 - Materials and supplies - 4,441 - 4,441 Contractual services - 632,026 601,696 30,330 Other 99,450 5,144,327 5,144,327 - Total housing 110,804 6,300,004 6,265,233 34,771 Total development 110,804 6,300,004 6,265,233 34,771 Total expenditures 110,804 6,300,004 6,265,233 34,771
Excess of revenues over expenditures 6,933,605 744,405 779,176 34,771
Excess of revenues and other financing sources over expenditures and other uses 6,933,605 744,405 779,176 34,771 Fund balance (deficit) at beginning of year (7,369,747) (7,369,747) (7,369,747) - Lapsed encumbrances 102,963 102,963 102,963 - Fund balance (deficit) at end of year $ (333,179) $ (6,522,379) $ (6,487,608) $ 34,771 Difference #VALUE! #VALUE! City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-4 Changes in Fund Balance - Budget and Actual HOPE Program Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 12,500 $ 12,500 $ 12,500 $ - Total revenues 12,500 12,500 12,500 -
Expenditures Current Development Housing Other - 9,500 9,500 - Total housing - 9,500 9,500 - Total development - 9,500 9,500 - Total expenditures - 9,500 9,500 -
Excess of revenues over expenditures 12,500 3,000 3,000 -
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 12,500 3,000 3,000 - Fund balance (deficit) at beginning of year (45,603) (45,603) (45,603) - Lapsed encumbrances 52,103 52,103 52,103 - Fund balance at end of year $ 19,000 $ 9,500 $ 9,500 $ -
172 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-5 Changes in Fund Balance - Budget and Actual Cable Communications Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Licenses and permits $ 6,075,668 $ 6,075,668 $ 6,075,668 $ - Charges for services 468,326 468,326 468,326 - Miscellaneous 107,919 107,919 107,919 - Total revenues 6,651,913 6,651,913 6,651,913 - Expenditures Current General government City attorney Contractual services - 10,000 10,000 - Total city attorney - 10,000 10,000 - Telecommunications Personal services 791,006 819,006 815,626 3,380 Materials and supplies 46,726 28,839 28,485 354 Contractual services 449,533 516,533 514,710 1,823 Other - 986 986 - Capital outlay 52,000 24,887 24,259 628 Total telecommunications 1,339,265 1,390,251 1,384,066 6,185 Total general government 1,339,265 1,400,251 1,394,066 6,185 Public safety Support services Personal services - 2,972,803 2,943,997 28,806 Materials and supplies - 495,141 477,987 17,154 Contractual services - 1,208,863 1,177,699 31,164 Other - 1,000 525 475 Total support services - 4,677,807 4,600,208 77,599 Total public safety - 4,677,807 4,600,208 77,599 Total expenditures 1,339,265 6,078,058 5,994,274 83,784
Excess of revenues over expenditures 5,312,648 573,855 657,639 83,784
Other financing sources (uses) Operating transfers out (868,906) (868,906) (868,906) -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 4,443,742 (295,051) (211,267) 83,784 Fund balance at beginning of year 1,508,399 1,508,399 1,508,399 - Lapsed encumbrances 203,142 203,142 203,142 - Fund balance at end of year $ 6,155,283 $ 1,416,490 $ 1,500,274 $ 83,784 Difference #VALUE!
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-6 Changes in Fund Balance - Budget and Actual HUD Section 108 Loans Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 116,536 $ 116,536 $ 116,536 $ - Total revenues 116,536 116,536 116,536 -
Expenditures - - - - Excess of revenues over expenditures 116,536 116,536 116,536 -
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 116,536 116,536 116,536 - Fund balance (deficit) at beginning of year (11,752,976) (11,752,976) (11,752,976) - Lapsed encumbrances - - - - Fund balance (deficit) at end of year $ (11,636,440) $ (11,636,440) $ (11,636,440) $ - 173 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-7 Changes in Fund Balance - Budget and Actual Fannie Mae Loans Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 19,791 $ 19,791 $ 19,791 $ - Total revenues 19,791 19,791 19,791 - Expenditures - - - - Excess of revenues over expenditures 19,791 19,791 19,791 - Other financing sources (uses) Operating transfers out - (23,068) (23,068) -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 19,791 (3,277) (3,277) - Fund balance (deficit) at beginning of year (4,630) (4,630) (4,630) - Lapsed encumbrances 20,000 20,000 20,000 - Fund balance at end of year $ 35,161 $ 12,093 $ 12,093 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-8 Changes in Fund Balance - Budget and Actual Land Management Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 101,233 $ 101,233 $ 101,233 $ - Total revenues 101,233 101,233 101,233 -
Expenditures Current Development Development administration Materials and supplies - 10,000 9,938 62 Contractual services - 35,000 25,534 9,466 Other - 12,000 11,874 126 Total develop administration - 57,000 47,346 9,654 Total development - 57,000 47,346 9,654 Total expenditures - 57,000 47,346 9,654
Excess of revenues over expenditures 101,233 44,233 53,887 9,654
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 101,233 44,233 53,887 9,654 Fund balance at beginning of year 223,954 223,954 223,954 - Lapsed encumbrances - - - - Fund balance at end of year $ 325,187 $ 268,187 $ 277,841 $ 9,654
174 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-9 Changes in Fund Balance - Budget and Actual Law Enforcement Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 22,873 $ 22,873 $ 22,873 $ - Charges for services 304,307 304,307 304,307 - Fines and forfeitures 392,790 392,790 392,790 - Miscellaneous 231,464 231,464 231,464 - Total revenues 951,434 951,434 951,434 - Expenditures Current Public safety Police Materials and supplies - 736,684 688,216 48,468 Contractual services - 168,934 142,295 26,639 Other - 25,000 1,914 23,086 Capital outlay - 150,954 145,680 5,274 Total police - 1,081,572 978,105 103,467 Total public safety - 1,081,572 978,105 103,467 Total expenditures - 1,081,572 978,105 103,467 Excess (deficiency) of revenues over expenditures 951,434 (130,138) (26,671) 103,467
Other financing sources (uses) Operating transfers in 3,050 3,050 3,050 - Operating transfers out - (76,111) (76,111) - Total other financing sources (uses) 3,050 (73,061) (73,061) - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 954,484 (203,199) (99,732) 103,467 Fund balance at beginning of year 1,359,191 1,359,191 1,359,191 - Lapsed encumbrances 15,917 15,917 15,917 - Fund balance at end of year $ 2,329,592 $ 1,171,909 $ 1,275,376 $ 103,467
175 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-10 Changes in Fund Balance - Budget and Actual General Government Grants Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Grants and subsidies $ 14,351,624 $ 14,351,624 $ 14,351,624 $- Miscellaneous 196,843 196,843 196,843 - Total revenues 14,548,467 14,548,467 14,548,467 - Expenditures Current General government City attorney Personal services - 889,927 628,565 261,362 Materials and supplies - 15,374 9,329 6,045 Contractual services 13,271 142,261 142,261 - Total city attorney 13,271 1,047,562 780,155 267,407 Municipal court judges Personal services - 232,605 222,013 10,592 Materials and supplies - 16,150 16,150 - Other - - - - Capital outlay - - - - Total municipal court judges - 248,755 238,163 10,592 Finance Contractual services - 293,917 293,917 - Total finance - 293,917 293,917 - Total general government 13,271 1,590,234 1,312,235 277,999 Public service Refuse collection Personal services - 236,892 200,373 36,519 Materials and supplies 75 4,766 4,766 - Contractual services 12,929 12,929 12,929 - Total refuse collection 13,004 254,587 218,068 36,519 Transportation Personal services - 837,220 299,047 538,173 Contractual services 11,860 11,860 11,860 - Capital outlay 109,319 358,988 358,988 - Total transportation 121,179 1,208,068 669,895 538,173 Total public service 134,183 1,462,655 887,963 574,692
Public safety Communications Contractual services 2,930 13,691 13,691 - Capital outlay 66,807 8,150,646 8,150,646 - Total communications 69,737 8,164,337 8,164,337 - Police Personal services - 548,320 397,783 150,537 Materials and supplies - 430,640 348,978 81,662 Contractual services - 22,037 15,653 6,384 Other - 1,470 1,470 - Capital outlay - 1,718,000 58,943 1,659,057 Total police - 2,720,467 822,827 1,897,640
Fire Materials and supplies 679 10,129 10,129 - Contractual services - - - - Capital outlay - 1,592,415 1,592,412 3 Total fire 679 1,602,544 1,602,541 3 Total public safety 70,416 12,487,348 10,589,705 1,897,643
(Continued)
176 City of Columbus, Ohio Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Exhibit B-10 (continued) General Government Grants Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Development Development administration Personal Services $ - $ 224,853 $ 136,985 $ 87,868 Materials and supplies - 10,000 1,695 8,305 Contractual services 1,261,255 6,927,502 6,927,502 - Total development administration 1,261,255 7,162,355 7,066,182 96,173 Economic Development Personal services - 80,000 39,870 40,130 Contractual services 548,000 3,129,200 3,129,200 - Total economic development 548,000 3,209,200 3,169,070 40,130
Neighborhood services Contractual services - 200,000 200,000 - Total neighborhood services - 200,000 200,000 - Housing Personal services 213,700 213,700 213,700 - Contractual services 242,744 242,744 242,744 - Total housing 456,444 456,444 456,444 - Total development 2,265,699 11,027,999 10,891,696 136,303 Health Health Personal services - 17,520 15,812 1,708 Materials and supplies 527 527 527 - Contractual services 45,213 619,693 619,693 - Total health 45,740 637,740 636,032 1,708 Total health 45,740 637,740 636,032 1,708 Total expenditures 2,529,309 27,205,976 24,317,631 2,888,345 Excess (deficiency) of revenues over expenditures 12,019,158 (12,657,509) (9,769,164) 2,888,345 Other financing sources (uses) Operating transfers in 2,118,390 2,118,390 2,118,390 - Operating transfers out - (399,078) (399,078) - Total other financing sources (uses) 2,118,390 1,719,312 1,719,312 - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 14,137,548 (10,938,197) (8,049,852) 2,888,345 Fund balance (deficit) at beginning of year (14,693,892) (14,693,892) (14,693,892) - Lapsed encumbrances 2,714,473 2,714,473 2,714,473 - Fund balance (deficit) at end of year $ 2,158,129 $ (22,917,616) $ (20,029,271) $ 2,888,345
177 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-11 Changes in Fund Balance - Budget and Actual Area Commissions Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 3,172 $ 3,172 $ 3,172 $ - Total revenues 3,172 3,172 3,172 -
Expenditures Current Development Neighborhood services Contractual services - 40,156 27,891 12,265 Total neighborhood services - 40,156 27,891 12,265 Total development - 40,156 27,891 12,265 Total expenditures - 40,156 27,891 12,265 Excess (deficiency) of revenues over expenditures 3,172 (36,984) (24,719) 12,265
Other financing sources (uses) Operating transfers in 8,000 8,000 8,000 - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 11,172 (28,984) (16,719) 12,265 Fund balance at beginning of year 18,427 18,427 18,427 - Lapsed encumbrances 39,340 39,340 39,340 - Fund balance at end of year $ 68,939 $ 28,783 $ 41,048 $ 12,265
Difference #VALUE! City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-12 Changes in Fund Balance - Budget and Actual Local Law Enforcement Block Grant Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Grants and subsidies $ 331,958 $ 331,958 $ 331,958 $ - Investment earnings 10,397 10,397 10,397 - Total revenues 342,355 342,355 342,355 - Expenditures Current Public safety Police Personal services 12,348 10,354 10,354 - Materials and supplies 352,573 163,875 163,875 - Contractual services - 550,084 361,667 188,417 Capital outlay - 79,637 - 79,637 Total police 364,921 803,950 535,896 268,054 Total public safety 364,921 803,950 535,896 268,054 Total expenditures 364,921 803,950 535,896 268,054 Excess (deficiency) of revenues over expenditures (22,566) (461,595) (193,541) 268,054 Other financing sources (uses) Operating transfers in 68,202 68,202 68,202 - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 45,636 (393,393) (125,339) 268,054 Fund balance at beginning of year 776,318 776,318 776,318 - Lapsed encumbrances 1,786 1,786 1,786 - Fund balance at end of year $ 823,740 $ 384,711 $ 652,765 $ 268,054 178
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-13 Changes in Fund Balance - Budget and Actual Special Purpose Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Charges for services $ 142,979 $ 142,979 $ 142,979 $ - Fines and forfeitures 15,885 15,885 15,885 - Miscellaneous 967,486 967,486 967,486 - Total revenues 1,126,350 1,126,350 1,126,350 - Expenditures Current General government City auditor Materials and supplies - 37 37 - Total city auditor - 37 37 - City attorney Personal services - 70,000 59,675 10,325 Contractual services - 80,000 25,053 54,947 Total city attorney - 150,000 84,728 65,272 City council Contractual services - 3,000 2,636 364 Total city council - 3,000 2,636 364 Mayor Contractual services - 7,000 7,000 - Total mayor - 7,000 7,000 - Total general government - 160,037 94,401 65,636
Public service Facilities management Contractual services - 200 200 - Total facilities management - 200 200 - Transportation Materials and supplies - 1,243 35 1,208 Other - 500 - 500 Total transportation - 1,743 35 1,708 Total public service - 1,943 235 1,708
Public safety Police Materials and supplies - 7,000 1,775 5,225 Contractual services - 42,916 24,244 18,672 Capital outlay - 10,000 - 10,000 Total police - 59,916 26,019 33,897 Fire Materials and supplies - 54,012 21,589 32,423 Contractual services - 23,641 12,162 11,479 Total fire - 77,653 33,751 43,902 Total public safety - 137,569 59,770 77,799 Recreation and parks Recreation and parks Personal services - 36,370 19,070 17,300 Materials and supplies - 76,701 22,795 53,906 Contractual services - 156,721 107,193 49,528 Capital outlay - 1,948,415 250,088 1,698,327 Total recreation and parks - 2,218,207 399,146 1,819,061 Total recreation and parks - 2,218,207 399,146 1,819,061 Total expenditures - 2,517,756 553,552 1,964,204
Excess (deficiency) of revenues over expenditures 1,126,350 (1,391,406) 572,798 1,964,204
Other financing sources (uses) - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 1,126,350 (1,391,406) 572,798 1,964,204 Fund balance at beginning of year 2,603,185 2,603,185 2,603,185 - Lapsed encumbrances 127,306 127,306 127,306 - Fund balance at end of year $ 3,856,841 $ 1,339,085 $ 3,303,289 $ 1,964,204
179 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-14 Changes in Fund Balance - Budget and Actual Mayor's Education Charitable Trust Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment Earnings $ 5,858 $ 5,858 $ 5,858 $ - Miscellaneous 128,628 128,628 128,628 - Total revenues 134,486 134,486 134,486 - Expenditures Current General government Office of education Materials and supplies - 20,000 2,091 17,909 Contractual services - 391,552 344,294 47,258 Total office of education - 411,552 346,385 65,167 Total general government - 411,552 346,385 65,167 Total expenditures - 411,552 346,385 65,167
Excess (deficiency) of revenues over expenditures 134,486 (277,066) (211,899) 65,167 Other financing sources (uses) Operating transfers in 70,000 70,000 70,000 -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 204,486 (207,066) (141,899) 65,167 Fund balance at beginning of year 305,508 305,508 305,508 - Lapsed encumbrances 52,122 52,122 52,122 - Fund balance at end of year $ 562,116 $ 150,564 $ 215,731 $ 65,167
180 City of Columbus, Ohio Schedule of Revenues, Expenditures, and Exhibit B-15 Changes in Fund Balance - Budget and Actual Drivers Alcohol Treatment Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Shared revenues $ 76,449 $ 76,449 $ 76,449 $ - Fines and forfeitures 68,397 68,397 68,397 - Total revenues 144,846 144,846 144,846 - Expenditures Current General government Municipal court judges Contractual services - 250,000 246,332 3,668 Total municipal court judges - 250,000 246,332 3,668 Total general government - 250,000 246,332 3,668 Public safety Police Contractual services - 15,000 11,326 3,674 Total police - 15,000 11,326 3,674 Total public safety - 15,000 11,326 3,674 Total expenditures - 265,000 257,658 7,342
Excess (deficiency) of revenues over expenditures 144,846 (120,154) (112,812) 7,342
Other financing sources (uses) - - - - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 144,846 (120,154) (112,812) 7,342 Fund balance at beginning of year 835,577 835,577 835,577 - Lapsed encumbrances 26,177 26,177 26,177 - Fund balance at end of year $ 1,006,600 $ 741,600 $ 748,942 $ 7,342
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-16 Changes in Fund Balance - Budget and Actual Municipal Court Special Projects Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Fines and forfeitures $ 1,157,867 $ 1,157,867 $ 1,157,867 $ - Total revenues 1,157,867 1,157,867 1,157,867 - Expenditures Current General government Municipal court judges Personal services 600,419 600,419 557,909 42,510 Materials and supplies 4,000 4,000 517 3,483 Contractual services 395,581 395,581 370,843 24,738 Total municipal court judges 1,000,000 1,000,000 929,269 70,731 Total general government 1,000,000 1,000,000 929,269 70,731 Total expenditures 1,000,000 1,000,000 929,269 70,731
Excess of revenues over expenditures 157,867 157,867 228,598 70,731
Other financing sources (uses) - - - - Excess of revenues and other financing sources over expenditures and other uses 157,867 157,867 228,598 70,731 Fund balance at beginning of year 537,759 537,759 537,759 - Lapsed encumbrances 1,479 1,479 1,479 - Fund balance at end of year $ 697,105 $ 697,105 $ 767,836 $ 70,731
181 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-17 Changes in Fund Balance - Budget and Actual Municipal Court Clerk Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Fines and forfeitures $ 2,449,213 $ 2,449,213 $ 2,449,213 $ - Total revenues 2,449,213 2,449,213 2,449,213 - Expenditures Current General government Municipal court judges Personal services 173,774 303,593 292,330 11,263 Materials and supplies 122,500 128,939 75,850 53,089 Contractual services 411,013 479,881 249,811 230,070 Capital outlay 56,000 56,000 37,306 18,694 Total municipal court judges 763,287 968,413 655,297 313,116
Municipal court clerk Personal services 730,254 730,669 730,669 - Materials and supplies 415,600 415,185 105,115 310,070 Contractual services 860,006 860,006 647,344 212,662 Capital outlay 62,000 62,000 20,706 41,294 Total municipal court clerk 2,067,860 2,067,860 1,503,834 564,026 Total general government 2,831,147 3,036,273 2,159,131 877,142 Total expenditures 2,831,147 3,036,273 2,159,131 877,142 Excess (deficiency) of revenues over expenditures (381,934) (587,060) 290,082 877,142 Other financing sources (uses) Operating transfers out - (75,760) (60,000) 15,760 Excess (deficiency) of revenues and other financing sources over expenditures and other uses (381,934) (662,820) 230,082 892,902 Fund balance at beginning of year 2,455,935 2,455,935 2,455,935 - Lapsed encumbrances 46,597 46,597 46,597 - Fund balance at end of year $ 2,120,598 $ 1,839,712 $ 2,732,614 $ 892,902
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-18 Changes in Fund Balance - Budget and Actual Columbus Community Relations Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 1,805 $ 1,805 $ 1,805 $ - Total revenues 1,805 1,805 1,805 - Expenditures Current General government Community relations Materials and supplies - 6,955 - 6,955 Contractual services - 5,529 - 5,529 Total community relations - 12,484 - 12,484 Total general government - 12,484 - 12,484
Excess (deficiency) of revenues over expenditures 1,805 (10,679) 1,805 12,484
Other financing sources (uses) - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 1,805 (10,679) 1,805 12,484 Fund balance at beginning of year 12,428 12,428 12,428 - Lapsed encumbrances 57 57 57 - Fund balance at end of year $ 14,290 $ 1,806 $ 14,290 $ 12,484
182 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-19 Changes in Fund Balance - Budget and Actual Housing/Business Tax Incentives Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Licenses and permits $ 77,500 $ 77,500 $ 77,500 $ - Total revenues 77,500 77,500 77,500 -
Expenditures Current Development Economic development Personal services - 159,000 141,904 17,096 Total economic development - 159,000 141,904 17,096 Total development - 159,000 141,904 17,096 Total expenditures - 159,000 141,904 17,096
Excess (deficiency) of revenues over expenditures 77,500 (81,500) (64,404) 17,096 Other financing sources (uses) - - - - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 77,500 (81,500) (64,404) 17,096 Fund balance at beginning of year 170,454 170,454 170,454 - Lapsed encumbrances - - - - Fund balance at end of year $ 247,954 $ 88,954 $ 106,050 $ 17,096
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-20 Changes in Fund Balance - Budget and Actual Hester Dysart Paramedic Education Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 2,153 $ 2,153 $ 2,153 $ - Total revenues 2,153 2,153 2,153 - Expenditures Current Public safety Fire Materials and supplies - 30,800 8,535 22,265 Contractual services - 13,200 623 12,577 Total fire - 44,000 9,158 34,842 Total public safety - 44,000 9,158 34,842 Total expenditures - 44,000 9,158 34,842
Excess (deficiency) of revenues over expenditures 2,153 (41,847) (7,005) 34,842
Other financing sources (uses) - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 2,153 (41,847) (7,005) 34,842 Fund balance at beginning of year 142,997 142,997 142,997 - Lapsed encumbrances 1,250 1,250 1,250 - Fund balance at end of year $ 146,400 $ 102,400 $ 137,242 $ 34,842
183 City of Columbus, Ohio Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Exhibit B-21 Hotel-Motel Tax Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 6,900,470 $ 6,900,470 $ 6,900,470 $- Total revenues 6,900,470 6,900,470 6,900,470 - Expenditures Current General government City council Contractual services 6,960,000 6,855,600 6,713,964 141,636 Total city council 6,960,000 6,855,600 6,713,964 141,636 Total general government 6,960,000 6,855,600 6,713,964 141,636 Total expenditures 6,960,000 6,855,600 6,713,964 141,636
Excess of revenues over expenditures (59,530) 44,870 186,506 141,636 Other financing sources (uses) Operating transfers out - (299,400) (299,400) -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses (59,530) (254,530) (112,894) 141,636 Fund balance at beginning of year 203,231 203,231 203,231 - Lapsed encumbrances - - - - Fund balance (deficit) at end of year $ 143,701 $ (51,299) $ 90,337 $ 141,636
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-22 Changes in Fund Balance - Budget and Actual Emergency Human Services Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 966,676 $ 966,676 $ 966,676 $ - Total revenues 966,676 966,676 966,676 - Expenditures Current Development Neighborhood services Contractual services 750,000 750,000 750,000 - Total neighborhood services 750,000 750,000 750,000 - Housing Contractual services - 267,881 266,666 1,215 Total housing - 267,881 266,666 1,215 Total development 750,000 1,017,881 1,016,666 1,215 Total expenditures 750,000 1,017,881 1,016,666 1,215 Excess (deficiency) of revenues over expenditures 216,676 (51,205) (49,990) 1,215
Other financing sources (uses) - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 216,676 (51,205) (49,990) 1,215 Fund balance at beginning of year 539,369 539,369 539,369 - Lapsed encumbrances 40,066 40,066 40,066 - Fund balance at end of year $ 796,111 $ 528,230 $ 529,445 $ 1,215
184 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-23 Changes in Fund Balance - Budget and Actual Private Leisure Assistance For Youth Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 41,029 $ 41,029 $ 41,029 $ - Miscellaneous 64,856 64,856 64,856 - Total revenues 105,885 105,885 105,885 - Expenditures Current Recreation and parks Recreation and parks Materials and supplies - 2,000 154 1,846 Contractual services - 107,287 74,895 32,392 Total recreation and parks - 109,287 75,049 34,238 Total recreation and parks - 109,287 75,049 34,238 Total expenditures - 109,287 75,049 34,238 Excess (deficiency) of revenues over expenditures 105,885 (3,402) 30,836 34,238
Other financing sources (uses) - - - - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 105,885 (3,402) 30,836 34,238 Fund balance at beginning of year 438,541 438,541 438,541 - Lapsed encumbrances 2,799 2,799 2,799 - Fund balance at end of year $ 547,225 $ 437,938 $ 472,176 $ 34,238
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-24 Changes in Fund Balance - Budget and Actual Tree Replacement Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 10,256 $ 10,256 $ 10,256 $ - Total revenues 10,256 10,256 10,256 -
Expenditures Current Recreation and parks Recreation and parks Materials and supplies - 95,061 39,501 55,560 Other - 1,000 - 1,000 Total recreation and parks - 96,061 39,501 56,560 Total recreation and parks - 96,061 39,501 56,560 Total expenditures - 96,061 39,501 56,560
Excess (deficiency) of revenues over expenditures 10,256 (85,805) (29,245) 56,560
Other financing sources (uses) - - - - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 10,256 (85,805) (29,245) 56,560 Fund balance at beginning of year 96,061 96,061 96,061 - Lapsed encumbrances 2,057 2,057 2,057 - Fund balance at end of year $ 108,374 $ 12,313 $ 68,873 $ 56,560
185 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-25 Changes in Fund Balance - Budget and Actual Gatrell Arts and Vocational Rehabilitation Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 434 $ 434 $ 434 $ - Total revenues 434 434 434 -
Expenditures Current Recreation and parks Recreation and parks Contractual services - 1,990 1,990 - Total recreation and parks - 1,990 1,990 - Total recreation and parks - 1,990 1,990 - Total expenditures - 1,990 1,990 -
Excess (deficiency) of revenues over expenditures 434 (1,556) (1,556) -
Other financing sources (uses) - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 434 (1,556) (1,556) -
Fund balance at beginning of year 34,934 34,934 34,934 - Lapsed encumbrances - - - - Fund balance at end of year $ 35,368 $ 33,378 $ 33,378 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-26 Changes in Fund Balance - Budget and Actual Columbus Housing Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 988,966 $ 988,966 $ 988,966 $ - Total revenues 988,966 988,966 988,966 -
Expenditures Current Development Development administration Contractual services - 995,000 988,966 6,034 Total development administration - 995,000 988,966 6,034 Total development - 995,000 988,966 6,034 Total expenditures - 995,000 988,966 6,034
Excess (deficiency) of revenues over expenditures 988,966 (6,034) - 6,034
Other financing sources (uses) - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 988,966 (6,034) - 6,034 Fund balance at beginning of year - - - - Lapsed encumbrances - - - - Fund balance (deficit) at end of year $ 988,966 $ (6,034) $ - $ 6,034
186 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-27 Changes in Fund Balance - Budget and Actual Neighborhood Economic Development Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 151,748 $ 151,748 $ 151,748 $ - Total revenues 151,748 151,748 151,748 - Expenditures Current Development Development administration Contractual services - 100,000 100,000 - Total development administration - 100,000 100,000 - Total development - 100,000 100,000 - Total expenditures - 100,000 100,000 -
Excess of revenues over expenditures 151,748 51,748 51,748 -
Other financing sources (uses) - - - - Excess of revenues and other financing sources over expenditures and other uses 151,748 51,748 51,748 - Fund balance at beginning of year 125,814 125,814 125,814 - Lapsed encumbrances - - - - Fund balance at end of year $ 277,562 $ 177,562 $ 177,562 $ - Difference #VALUE! #VALUE!
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-28 Changes in Fund Balance - Budget and Actual Fire Quarter Master Incentive Travel Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues $- $ - $ - $ -
Expenditures Current Public safety Fire Contractual services - 30,300 2,456 27,844 Total fire - 30,300 2,456 27,844 Total public safety - 30,300 2,456 27,844 Total expenditures - 30,300 2,456 27,844
Excess (deficiency) of revenues over expenditures - (30,300) (2,456) 27,844
Other financing sources (uses) Operating transfers in 20,300 20,300 20,300 -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 20,300 (10,000) 17,844 27,844 Fund balance at beginning of year 10,000 10,000 10,000 - Lapsed encumbrances - - - - Fund balance at end of year $ 30,300 $ - $ 27,844 $ 27,844
187 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-29 Changes in Fund Balance - Budget and Actual Development Services Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Licenses and permits $ 13,702,168 $ 13,702,168 $ 13,702,168 $- Charges for services 6,984,599 6,984,599 6,984,599 - Miscellaneous 949,113 949,113 949,113 - Total revenues 21,635,880 21,635,880 21,635,880 - Expenditures Development administration Personal Services 576,511 634,511 626,916 7,595 Total development administration 576,511 634,511 626,916 7,595
Building services Personal Services 11,672,606 11,448,556 11,074,170 374,386 Materials and supplies 105,525 105,525 49,804 55,721 Contractual services 2,222,358 2,328,908 2,198,449 130,459 Other 19,160 19,160 5,796 13,364 Capital outlay 262,400 262,400 - 262,400 Total building services 14,282,049 14,164,549 13,328,219 836,330
Planning Personal Services 209,923 269,423 263,316 6,107 Materials and supplies - - - - Total planning 209,923 269,423 263,316 6,107 Total development 15,068,483 15,068,483 14,218,451 850,032
Public Service Public Service Administration Personal services 314,266 324,991 322,382 2,609 Contractual services 15,237 15,237 4,454 10,783 Total public service administration 329,503 340,228 326,836 13,392
Transportation Personal services 8,346,858 8,336,133 7,533,432 802,701 Materials and supplies 68,250 68,250 49,914 18,336 Contractual services 1,467,653 1,467,653 1,025,927 441,726 Other 5,000 5,000 1,280 3,720 Capital outlay 10,000 10,000 - 10,000 Total transportation 9,897,761 9,887,036 8,610,553 1,276,483 Total public service 10,227,264 10,227,264 8,937,389 1,289,875 Total expenditures 25,295,747 25,295,747 23,155,840 2,139,907 Excess (deficiency) of revenues over expenditures (3,659,867) (3,659,867) (1,519,960) 2,139,907
Other financing sources (uses) - - - - Excess (deficiency) of revenues and other financing sources over expenditures and other uses (3,659,867) (3,659,867) (1,519,960) 2,139,907 Fund balance at beginning of year 3,944,282 3,944,282 3,944,282 - Lapsed encumbrances 68,688 68,688 68,688 - Fund balance at end of year $ 353,103 $ 353,103 $ 2,493,010 $ 2,139,907
188 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-30 Changes in Fund Balance - Budget and Actual Urban Development Action Grants Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 347,125 $ 347,125 $ 347,125 $ - Total revenues 347,125 347,125 347,125 - Expenditures Current General government Finance Contractual services - 66,668 66,668 - Total finance - 66,668 66,668 - Total general government - 66,668 66,668 -
Development Economic development Contractual services - 200,000 200,000 - Total economic development - 200,000 200,000 - Total development - 200,000 200,000 - Total expenditures - 266,668 266,668 - Excess of revenues over expenditures 347,125 80,457 80,457 -
Other financing sources (uses) Operating transfers in - - - - Excess of revenues and other financing sources over expenditures and other uses 347,125 80,457 80,457 -
Fund balance at beginning of year 101,754 101,754 101,754 - Lapsed encumbrances 387,176 387,176 387,176 - Fund balance at end of year $ 836,055 $ 569,387 $ 569,387 $ -
189 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-31 Changes in Fund Balance - Budget and Actual Community Development Act Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Grants and subsidies $ 10,600,244 $ 10,600,244 $ 10,600,244 $- Investment earnings 47,238 47,238 47,238 - Charges for services 250,274 250,274 250,274 - Miscellaneous 3,946,146 3,946,146 3,946,146 - Total revenues 14,843,902 14,843,902 14,843,902 - Expenditures Current General government Office of education Personal services 250,000 250,000 249,943 57 Total office of education 250,000 250,000 249,943 57
Finance Personal services 411,537 411,537 396,093 15,444 Materials and supplies 5,500 5,500 1,531 3,969 Contractual services 573,050 573,050 504,986 68,064 Other 85,000 85,000 39,889 45,111 Total Finance 1,075,087 1,075,087 942,499 132,588 Total general government 1,325,087 1,325,087 1,192,442 132,645 Public service Refuse Materials and supplies 5,000 5,000 3,000 2,000 Contractual services 156,072 156,072 156,072 - Total refuse 161,072 161,072 159,072 2,000
Transportation Personal services 147,897 147,897 147,885 12 Total transportation 147,897 147,897 147,885 12 Total public service 308,969 308,969 306,957 2,012 Development Development administration Personal services 672,372 672,372 618,118 54,254 Materials and supplies 7,646 7,646 3,073 4,573 Contractual services 14,337 14,337 9,742 4,595 Total development administration 694,355 694,355 630,933 63,422
Economic development Personal services 996,731 996,731 960,440 36,291 Materials and supplies 12,100 12,100 3,070 9,030 Contractual services 953,196 2,553,196 2,528,305 24,891 Other 1,611,689 850,000 850,000 - Total economic development 3,573,716 4,412,027 4,341,815 70,212 Neighborhood services Personal services 1,112,819 1,112,819 1,093,305 19,514 Materials and supplies 5,000 5,000 - 5,000 Contractual services 509,799 509,799 432,333 77,466 Total neighborhood services 1,627,618 1,627,618 1,525,638 101,980
(continued)
190 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-31 (Continued) Changes in Fund Balance - Budget and Actual Community Development Act Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Planning Personal services $ 194,335 $ 194,335 $ 152,383 $ 41,952 Materials and supplies 1,500 1,500 - 1,500 Contractual services 5,000 5,000 964 4,036 Total planning 200,835 200,835 153,347 47,488
Housing Personal services 1,726,900 1,726,900 1,662,488 64,412 Materials and supplies 29,733 29,733 26,661 3,072 Contractual services 1,720,496 1,810,496 1,773,305 37,191 Other 1,707,061 1,647,061 1,647,061 - Total housing 5,184,190 5,214,190 5,109,515 104,675 Total development 11,280,714 12,149,025 11,761,248 387,777 Health Health Personal services 306,672 306,672 279,119 27,553 Materials and supplies 1,826 1,826 805 1,021 Contractual services 7,950 7,950 6,317 1,633 Total health 316,448 316,448 286,241 30,207 Total health 316,448 316,448 286,241 30,207 Recreation and parks Recreation and parks Personal services 192,887 203,893 187,941 15,952 Materials and supplies 8,505 8,505 5,461 3,044 Contractual services 41,035 41,035 40,977 58 Other 1,000 1,000 1,000 - Total recreation and parks 243,427 254,433 235,379 19,054 Total recreation and parks 243,427 254,433 235,379 19,054 Total expenditures 13,474,645 14,353,962 13,782,267 571,695 Excess of revenues over expenditures 1,369,257 489,940 1,061,635 571,695
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 1,369,257 489,940 1,061,635 571,695 Fund balance (deficit) at beginning of year (5,749,978) (5,749,978) (5,749,978) - Lapsed encumbrances 2,438,759 2,438,759 2,438,759 - Fund balance (deficit) at end of year $ (1,941,962) $ (2,821,279) $ (2,249,584) $ 571,695
191 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-32 Changes in Fund Balance - Budget and Actual Health Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Licenses and permits $ 1,936,169 $ 1,936,169 $ 1,936,169 $ - Charges for services 3,496,264 3,496,264 3,496,264 - Miscellaneous 203,365 203,365 203,365 - Total revenues 5,635,798 5,635,798 5,635,798 - Expenditures Current Health Health Personal services 13,473,842 13,473,842 13,332,953 140,889 Materials and supplies 468,128 573,128 570,708 2,420 Contractual services 9,189,399 9,179,399 8,770,522 408,877 Other 9,200 11,200 10,562 638 Total health 23,140,569 23,237,569 22,684,745 552,824 Total health 23,140,569 23,237,569 22,684,745 552,824 Total expenditures 23,140,569 23,237,569 22,684,745 552,824 Excess (deficiency) of revenues over expenditures (17,504,771) (17,601,771) (17,048,947) 552,824 Other financing sources (uses) Operating transfers in 17,167,018 17,167,018 17,167,018 - Operating transfers out (180,000) (180,000) (180,000) - Total other financing sources (uses) 16,987,018 16,987,018 16,987,018 -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses (517,753) (614,753) (61,929) 552,824 Fund balance at beginning of year 77,795 77,795 77,795 - Lapsed encumbrances 704,734 704,734 704,734 - Fund balance at end of year $ 264,776 $ 167,776 $ 720,600 $ 552,824
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-33 Changes in Fund Balance - Budget and Actual Health Department Grants Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Grants and subsidies $ 12,573,085 $ 12,573,085 $ 12,573,085 $- Investment earnings 2,956 2,956 2,956 - Charges for service 370,888 370,888 370,888 - Miscellaneous 56,838 56,838 56,838 - Total revenues 13,003,767 13,003,767 13,003,767 - Expenditures Current Health Health Personal services - 9,744,245 9,169,379 574,866 Materials and supplies - 713,935 708,723 5,212 Contractual services 119,422 3,468,521 3,468,521 - Other 2,817 2,817 2,817 - Total health 122,239 13,929,518 13,349,440 580,078 Total health 122,239 13,929,518 13,349,440 580,078 Total expenditures 122,239 13,929,518 13,349,440 580,078 Excess (deficiency) of revenues over expenditures 12,881,528 (925,751) (345,673) 580,078 Other financing sources (uses) Operating transfers in 180,000 180,000 180,000 - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 13,061,528 (745,751) (165,673) 580,078 Fund balance (deficit) at beginning of year (376,530) (376,530) (376,530) - Lapsed encumbrances 165,067 165,067 165,067 - Fund balance (deficit) at end of year $ 12,850,065 $ (957,214) $ (377,136) $ 580,078
192 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-34 Changes in Fund Balance - Budget and Actual County Auto License Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Shared revenues $ 2,700,000 $ 2,700,000 $ 2,700,000 $ - Total revenues 2,700,000 2,700,000 2,700,000 - Expenditures Current Public service Transportation Contractual services - 3,182,819 3,182,819 - Capital outlay - 42,406 - 42,406 Total transportation - 3,225,225 3,182,819 42,406 Total public service - 3,225,225 3,182,819 42,406 Total expenditures - 3,225,225 3,182,819 42,406 Excess (deficiency) of revenues over expenditures 2,700,000 (525,225) (482,819) 42,406
Other financing sources (uses) Operating transfers in 185,183 185,183 185,183 -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 2,885,183 (340,042) (297,636) 42,406 Fund balance at beginning of year 340,042 340,042 340,042 - Lapsed encumbrances - - - - Fund balance at end of year $ 3,225,225 $ - $ 42,406 $ 42,406
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-35 Changes in Fund Balance - Budget and Actual Street Construction Maintenance & Repair Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 31,788 $ 31,788 $ 31,788 $ - Licenses and permits 1,059,084 1,059,084 1,059,084 - Shared revenues 24,596,197 24,596,197 24,596,197 - Charges for services 7,285,858 7,285,858 7,285,858 - Miscellaneous 487,102 487,102 487,102 - Total revenues 33,460,029 33,460,029 33,460,029 - Expenditures Current Public service Service director Personal services 1,645,895 1,645,895 1,623,435 22,460 Contractual services 91,423 91,423 29,617 61,806 Total service director 1,737,318 1,737,318 1,653,052 84,266
Refuse Personal services 580,796 638,931 628,491 10,440 Contractual services - 1,865 1,460 405 Total refuse 580,796 640,796 629,951 10,845
Transportation Personal services 20,975,772 20,975,772 20,572,365 403,407 Materials and supplies 1,162,000 1,378,570 1,193,731 184,839 Contractual services 8,106,661 10,686,478 10,445,860 240,618 Other 80,000 155,000 124,197 30,803 Capital outlay 350,000 200,000 33,859 166,141 Total transportation 30,674,433 33,395,820 32,370,012 1,025,808 Total public service 32,992,547 35,773,934 34,653,015 1,120,919 Total expenditures 32,992,547 35,773,934 34,653,015 1,120,919 Excess (deficiency) of revenues over expenditures 467,482 (2,313,905) (1,192,986) 1,120,919 Other financing sources (uses) Operating transfers in 308,413 308,413 308,413 - Operating transfers out - (335,183) (335,183) - Total other financing sources (uses) 308,413 (26,770) (26,770) - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 775,895 (2,340,675) (1,219,756) 1,120,919 Fund balance at beginning of year 2,889,075 2,889,075 2,889,075 - Lapsed encumbrances 423,981 423,981 423,981 - Fund balance at end of year $ 4,088,951 $ 972,381 $ 2,093,300 $ 1,120,919
193 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-36 Changes in Fund Balance - Budget and Actual Municipal Motor Vehicle Tax Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 3,065,516 $ 3,065,516 $ 3,065,516 $ - Total revenues 3,065,516 3,065,516 3,065,516 - Expenditures Current Public service Transportation Materials and supplies - 1,272,000 1,272,000 - Contractual services - 1,478,000 1,478,000 - Capital outlay - 50,000 48,638 1,362 Total transportation - 2,800,000 2,798,638 1,362 Total public service - 2,800,000 2,798,638 1,362 Total expenditures - 2,800,000 2,798,638 1,362
Excess of revenues over expenditures 3,065,516 265,516 266,878 1,362
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 3,065,516 265,516 266,878 1,362 Fund balance at beginning of year 593,966 593,966 593,966 - Lapsed encumbrances 281,890 281,890 281,890 - Fund balance at end of year $ 3,941,372 $ 1,141,372 $ 1,142,734 $ 1,362
City of Columbus, Ohio Exhibit B-37 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Treasury Investment Earnings Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 2,169,655 $ 2,169,655 $ 2,169,655 $ - Total revenues 2,169,655 2,169,655 2,169,655 - Expenditures Current General government City auditor Other 2,169,655 1,993,396 1,993,396 - Total city auditor 2,169,655 1,993,396 1,993,396 - Total general government 2,169,655 1,993,396 1,993,396 - Total expenditures 2,169,655 1,993,396 1,993,396 -
Excess of revenues over expenditures - 176,259 176,259 -
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses - 176,259 176,259 - Fund balance at beginning of year 77,301 77,301 77,301 - Lapsed encumbrances - - - - Fund balance at end of year $ 77,301 $ 253,560 $ 253,560 $ -
194 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-38 Changes in Fund Balance - Budget and Actual Golf Course Operations Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Charges for services $ 4,109,288 $ 4,109,288 $ 4,109,288 $ - Miscellaneous 26,749 26,749 26,749 - Total revenues 4,136,037 4,136,037 4,136,037 - Expenditures Current Recreation and parks Golf Personal services 3,185,470 3,185,470 2,989,780 195,690 Materials and supplies 416,500 416,500 385,227 31,273 Contractual services 1,234,546 1,234,546 1,185,291 49,255 Other 3,200 3,200 3,200 - Capital outlay 30,000 30,000 - 30,000 Total golf 4,869,716 4,869,716 4,563,498 306,218 Total recreation and parks 4,869,716 4,869,716 4,563,498 306,218 Total expenditures 4,869,716 4,869,716 4,563,498 306,218 Excess (deficiency) of revenues over expenditures (733,679) (733,679) (427,461) 306,218
Other financing sources (uses) Debt proceeds 283,097 283,097 283,097 - Operating transfers in 2,274 2,274 2,274 - Total other financing sources (uses) 285,371 285,371 285,371 -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses (448,308) (448,308) (142,090) 306,218 Fund balance at beginning of year 685,117 685,117 685,117 - Lapsed encumbrances 247,119 247,119 247,119 - Fund balance at end of year $ 483,928 $ 483,928 $ 790,146 $ 306,218
195 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-39 Changes in Fund Balance - Budget and Actual Recreation and Parks Operations Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Charges for services $ 4,771,251 $ 4,771,251 $ 4,771,251 $ Miscellaneous 419,067 419,067 419,067 - Total revenues 5,190,318 5,190,318 5,190,318 - Expenditures Current Recreation and parks Recreation and parks Personal services 20,686,846 21,137,010 21,094,145 42,865 Materials and supplies 918,266 808,594 719,541 89,053 Contractual services 6,045,186 6,516,472 6,373,104 143,368 Other 75,000 85,000 79,920 5,080 Capital outlay 7,000 18,672 18,672 - Total recreation and parks 27,732,298 28,565,748 28,285,382 280,366 Total recreation and parks 27,732,298 28,565,748 28,285,382 280,366 Total expenditures 27,732,298 28,565,748 28,285,382 280,366 Excess (deficiency) of revenues over expenditures (22,541,980) (23,375,430) (23,095,064) 280,366 Other financing sources (uses) Operating transfers in 22,655,103 22,655,103 22,655,103 - Operating transfers out (197,200) (197,200) (197,200) - Total other financing sources (uses) 22,457,903 22,457,903 22,457,903 - Excess (deficiency) of revenues and other financing sources over expenditures and other uses (84,077) (917,527) (637,161) 280,366 Fund balance at beginning of year 143,286 143,286 143,286 - Lapsed encumbrances 255,010 255,010 255,010 - Fund balance (deficit) at end of year $ 314,219 $ (519,231) $ (238,865) $ 280,366
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-40 Changes in Fund Balance - Budget and Actual Recreation & Parks Grants Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Grants and subsidies $ 48,655,161 $ 48,655,161 $ 48,655,161 $- Investment earnings 18,651 18,651 18,651 - Charges for service 650,795 650,795 650,795 - Miscellaneous 197,687 197,687 197,687 - Total revenues 49,522,294 49,522,294 49,522,294 - Expenditures Current Recreation and parks Recreation and parks Personal services - 8,887,162 8,469,449 417,713 Materials and supplies - 319,658 228,292 91,366 Contractual services - 49,282,946 41,990,042 7,292,904 Other - 45,141 19,821 25,320 Capital outlay 4,190,329 4,287,181 4,287,181 - Total recreation and parks 4,190,329 62,822,088 54,994,785 7,827,303 Total recreation and parks 4,190,329 62,822,088 54,994,785 7,827,303 Total expenditures 4,190,329 62,822,088 54,994,785 7,827,303 Excess (deficiency) of revenues over expenditures 45,331,965 (13,299,794) (5,472,491) 7,827,303 Other financing sources (uses) Operating transfers in 197,200 197,200 197,200 - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 45,529,165 (13,102,594) (5,275,291) 7,827,303 Fund balance (deficit) at beginning of year (34,769,104) (34,769,104) (34,769,104) - Lapsed encumbrances 5,138,156 5,138,156 5,138,156 - Fund balance (deficit) at end of year $ 15,898,217 $ (42,733,542) $ (34,906,239) $ 7,827,303
196
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-41 Changes in Fund Balance - Budget and Actual Private Grants Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Grants and subsidies $ 151,766 $ 151,766 $ 151,766 $ - Miscellaneous 101,741 101,741 101,741 - Total revenues 253,507 253,507 253,507 - Expenditures Current General government Office of education Personal services - 35,000 33,634 1,366 Materials and supplies 7,749 7,749 7,749 - Contractual services 38,477 550,018 550,018 - Total office of education 46,226 592,767 591,401 1,366 Total general government 46,226 592,767 591,401 1,366 Public safety Fire Materials and supplies - 2,875 2,070 805 Contractual services 3,000 3,000 3,000 - Total fire 3,000 5,875 5,070 805 Total public safety 3,000 5,875 5,070 805
Health Health Personal Services 58,147 116,446 116,446 - Materials & supplies 1,467 9,796 9,796 - Contractual services 27,752 94,273 94,273 - Other - 29,211 29,211 - Total health 87,366 249,726 249,726 - Total health 87,366 249,726 249,726 - Recreation and parks Recreation and parks Materials & supplies - 5,000 1,285 3,715 Capital outlay - 100,000 100,000 - Total recreation and parks - 105,000 101,285 3,715 Total recreation and parks - 105,000 101,285 3,715 Total expenditures 136,592 953,368 947,482 5,886 Excess (deficiency) of revenues over expenditures 116,915 (699,861) (693,975) 5,886 Other financing sources (uses) Transfers in - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 116,915 (699,861) (693,975) 5,886 Fund balance at beginning of year 201,113 201,113 201,113 - Lapsed encumbrances 50,061 50,061 50,061 - Fund balance (deficit) at end of year $ 368,089 $ (448,687) $ (442,801) $ 5,886
197 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-42 Changes in Fund Balance - Budget and Actual Urban Site Acquisition Loan Fund Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative)
Revenues Miscellaneous $ 35,616 $ 35,616 $ 35,616 $ -
Expenditures - - - -
Excess of revenues over expenditures 35,616 35,616 35,616 -
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 35,616 35,616 35,616 - Fund balance at beginning of year 183 183 183 - Lapsed encumbrances 130 130 130 - Fund balance at end of year $ 35,929 $ 35,929 $ 35,929 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-43 Changes in Fund Balance - Budget and Actual Collection Fees Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Income taxes $ 175,305 $ 175,305 $ 175,305 $ - Fines & forfeitures 521,048 521,048 521,048 - Total revenues 696,353 696,353 696,353 - Expenditures Current General government City attorney Contractual services 400,000 400,000 400,000 - Total City attorney 400,000 400,000 400,000 -
Parking violations bureau Contractual services - 106,117 86,721 19,396 Total Parking violations bureau - 106,117 86,721 19,396
Municipal court clerk Personal services - 158,665 70,940 87,725 Contractual services 420,000 420,000 370,000 50,000 Total municipal court clerk 420,000 578,665 440,940 137,725 Total general government 820,000 1,084,782 927,661 157,121 Total expenditures 820,000 1,084,782 927,661 157,121
Excess (deficiency) of revenues over expenditures (123,647) (388,429) (231,308) 157,121 Other financing sources (uses) - - - -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses (123,647) (388,429) (231,308) 157,121 Fund balance (deficit) at beginning of year (382,530) (382,530) (382,530) - Lapsed encumbrances 260,349 260,349 260,349 - Fund balance (deficit) at end of year $ (245,828) $ (510,610) $ (353,489) $ 157,121
198 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-44 Changes in Fund Balance - Budget and Actual City Attorney Mediation Fund Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 89,898 $ 89,898 $ 89,898 $ - Total revenues 89,898 89,898 89,898 - Expenditures Current General government City attorney Contractual services - 89,898 46,113 43,785 Total city attorney - 89,898 46,113 43,785 Total general government - 89,898 46,113 43,785 Total expenditures - 89,898 46,113 43,785 Excess of revenues over expenditures 89,898 - 43,785 43,785
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 89,898 - 43,785 43,785 Fund balance at beginning of year - - - - Lapsed encumbrances - - - - Fund balance at end of year $ 89,898 $ - $ 43,785 $ 43,785
199 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-45 Changes in Fund Balance - Budget and Actual Environmental Fund Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Fines and forfeitures $ 25,799 $ 25,799 $ 25,799 $ - Total revenues 25,799 25,799 25,799 -
Expenditures Current General government City attorney Contractual Services - 5,000 5,000 - Total city attorney - 5,000 5,000 - Total general government - 5,000 5,000 - Total expenditures - 5,000 5,000 -
Excess of revenues over expenditures 25,799 20,799 20,799 -
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 25,799 20,799 20,799 - Fund balance at beginning of year 74,201 74,201 74,201 - Lapsed encumbrances - - - - Fund balance at end of year $ 100,000 $ 95,000 $ 95,000 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-46 Changes in Fund Balance - Budget and Actual Citywide Training Entrepreneurial Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Charges for services $ 4,235 $ 4,235 $ 4,235 $ - Total revenues 4,235 4,235 4,235 -
Expenditures - - - -
Excess of revenues over expenditures 4,235 4,235 4,235 -
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 4,235 4,235 4,235 - Fund balance at beginning of year 1,206 1,206 1,206 - Lapsed encumbrances - - - - Fund balance at end of year $ 5,441 $ 5,441 $ 5,441 $ -
200 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-47 Changes in Fund Balance - Budget and Actual Easton TIF Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 55,767 $ 55,767 $ 55,767 $ - Miscellaneous 3,855,799 3,855,799 3,855,799 - Total revenues 3,911,566 3,911,566 3,911,566 -
Expenditures Current Development Development administration Other - 35,756,825 35,756,825 - Total development administration - 35,756,825 35,756,825 - Total development - 35,756,825 35,756,825 - Total expenditures - 35,756,825 35,756,825 - Excess (deficiency) of revenues over expenditures 3,911,566 (31,845,259) (31,845,259) -
Other financing sources (uses) Debt proceeds 36,430,000 36,430,000 36,430,000 - Operating transfers out (1,660,974) (3,583,483) (3,583,483) - Total other financing sources (uses) 34,769,026 32,846,517 32,846,517 -
Excess of revenues and other financing sources over expenditures and other uses 38,680,592 1,001,258 1,001,258 - Fund balance at beginning of year 3,060,452 3,060,452 3,060,452 - Lapsed encumbrances - - - - Fund balance at end of year $ 41,741,044 $ 4,061,710 $ 4,061,710 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-48 Changes in Fund Balance - Budget and Actual Polaris TIF Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 50,573 $ 50,573 $ 50,573 $ - Miscellaneous 2,925,665 2,925,665 2,925,665 - Total revenues 2,976,238 2,976,238 2,976,238 - Expenditures Current General government City auditor Other - 104,524 104,524 - Total city auditor - 104,524 104,524 - Total general government - 104,524 104,524 - Development Development administration Other - 1,609,993 1,609,993 - Total development administration - 1,609,993 1,609,993 - Total development - 1,609,993 1,609,993 - Public Service Public service director Contractual services - 8,919 8,919 - Total public service director - 8,919 8,919 - Total public service - 8,919 8,919 - Total expenditures - 1,723,436 1,723,436 - Excess of revenues over expenditures 2,976,238 1,252,802 1,252,802 -
Other financing sources (uses) Debt proceeds 4,034,868 4,034,868 4,034,868 - Operating transfers out (100,000) (2,122,834) (2,122,834) - Total other financing sources (uses) 3,934,868 1,912,034 1,912,034 -
Excess of revenues and other financing sources over expenditures and other uses 6,911,106 3,164,836 3,164,836 - Fund balance at beginning of year 1,259,162 1,259,162 1,259,162 - Lapsed encumbrances - - - - Fund balance at end of year $ 8,170,268 $ 4,423,998 $ 4,423,998 $ -
201 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-49 Changes in Fund Balance - Budget and Actual Tuttle Crossing TIF Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 629,767 $ 629,767 $ 629,767 $ - Total revenues 629,767 629,767 629,767 -
Expenditures - - - -
Excess of revenues over expenditures 629,767 629,767 629,767 -
Other financing sources (uses) Operating transfers out - (1,179,134) (1,179,134) -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 629,767 (549,367) (549,367) - Fund balance at beginning of year 881,689 881,689 881,689 - Lapsed encumbrances - - - - Fund balance at end of year $ 1,511,456 $ 332,322 $ 332,322 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-50 Changes in Fund Balance - Budget and Actual Nationwide Pen Site TIF Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 15,815 $ 15,815 $ 15,815 $ - Miscellaneous 1,542,077 1,542,077 1,542,077 - Total revenues 1,557,892 1,557,892 1,557,892 -
Expenditures - - - -
Excess of revenues over expenditures 1,557,892 1,557,892 1,557,892 -
Other financing sources (uses) Operating transfers out - (1,570,962) (1,570,962) - - (1,570,962) (1,570,962) -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 1,557,892 (13,070) (13,070) - Fund balance at beginning of year 28,885 28,885 28,885 - Lapsed encumbrances - - - - Fund balance at end of year $ 1,586,777 $ 15,815 $ 15,815 $ -
202 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-51 Changes in Fund Balance - Budget and Actual Nationwide Off Sites TIF Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 9,923 $ 9,923 $ 9,923 $ - Miscellaneous 967,721 967,721 967,721 - Total revenues 977,644 977,644 977,644 -
Expenditures - - - -
Excess of revenues over expenditures 977,644 977,644 977,644 -
Other financing sources (uses) Operating transfers out - (749,260) (749,260) -
Excess of revenues and other financing sources over expenditures and other uses 977,644 228,384 228,384 -
Fund balance at beginning of year 749,260 749,260 749,260 - Lapsed encumbrances - - - - Fund balance at end of year $ 1,726,904 $ 977,644 $ 977,644 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-52 Changes in Fund Balance - Budget and Actual Miranova TIF Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 489,674 $ 489,674 $ 489,674 $ - Total revenues 489,674 489,674 489,674 -
Expenditures Current Development Development administration Other - 378,448 378,448 - Total development administration - 378,448 378,448 - Total development - 378,448 378,448 - Total expenditures - 378,448 378,448 - Excess of revenues over expenditures 489,674 111,226 111,226 -
Other financing sources (uses) - - - -
Excess of revenues and other financing sources over expenditures and other uses 489,674 111,226 111,226 - Fund balance at beginning of year 528,889 528,889 528,889 - Lapsed encumbrances - - - - Fund balance at end of year $ 1,018,563 $ 640,115 $ 640,115 $ -
203 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-53 Changes in Fund Balance - Budget and Actual Crewville TIF Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 103,807 $ 103,807 $ 103,807 $ - Total revenues 103,807 103,807 103,807 -
Expenditures Current General government City auditor Other - 120,777 120,777 - Total city auditor - 120,777 120,777 - Total general government - 120,777 120,777 - Total expenditures - 120,777 120,777 -
Excess (deficiency) of revenues over expenditures 103,807 (16,970) (16,970) - Other financing sources (uses) - - - - Excess (deficiency) of revenues and other financing sources over expenditures and other uses 103,807 (16,970) (16,970) - Fund balance at beginning of year 16,970 16,970 16,970 - Lapsed encumbrances - - - - Fund balance at end of year $ 120,777 $ - $ - $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-54 Changes in Fund Balance - Budget and Actual Brewery District TIF Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 21,913 $ 21,913 $ 21,913 $ - Total revenues 21,913 21,913 21,913 - Expenditures Current Development Development administration Contractual services - 3,250 3,250 - Total development administration - 3,250 3,250 - Total development - 3,250 3,250 - Total expenditures - 3,250 3,250 -
Excess of revenues over expenditures 21,913 18,663 18,663 -
Other financing sources (uses) Operating transfers out (136,000) (68,601) (68,601) - Excess (deficiency) of revenues and other financing sources over expenditures and other uses (114,087) (49,938) (49,938) -
Fund balance at beginning of year 441,997 441,997 441,997 - Lapsed encumbrances 201 201 201 - Fund balance at end of year $ 328,111 $ 392,260 $ 392,260 $ - 204 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-55 Changes in Fund Balance - Budget and Actual Waggoner Road TIF Budget Basis Year ended December 31, 2004 Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Investment earnings $ 1,892 $ 1,892 $ 1,892 $ - Miscellaneous 60,598 60,598 60,598 - Total revenues 62,490 62,490 62,490 - Expenditures Current Development Development administration Other - 125,000 125,000 - Total development administration - 125,000 125,000 - Total development - 125,000 125,000 - Total expenditures - 125,000 125,000 -
Excess (deficiency) of revenues over expenditures 62,490 (62,510) (62,510) -
Other financing sources (uses) Debt proceeds 280,828 280,828 280,828 - Operating transfers out - (17,244) (17,244) - Total other financing sources (uses) 280,828 263,584 263,584 - Excess of revenues and other financing sources over expenditures and other uses 343,318 201,074 201,074 -
Fund balance at beginning of year - - - - Lapsed encumbrances - - - - Fund balance at end of year $ 343,318 $ 201,074 $ 201,074 $ -
City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-56 Changes in Fund Balance - Budget and Actual Recreation Debt Service Budget Basis Year ended December 31, 2004
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Charges for service $ 425,111 $ 425,111 $ 425,111 $ - Total revenues 425,111 425,111 425,111 -
Expenditures - - - -
Excess of revenues over expenditures 425,111 425,111 425,111 -
Other financing sources (uses) Debt proceeds 21,318 21,318 21,318 - Operating transfers out (993,388) (436,460) (436,460) - Total other financing sources (uses) (972,070) (415,142) (415,142) -
Excess of revenues and other financing sources over expenditures and other uses (546,959) 9,969 9,969 - Fund balance at beginning of year 47,930 47,930 47,930 - Lapsed encumbrances - - - - Fund balance at end of year $ (499,029) $ 57,899 $ 57,899 $ -
205 City of Columbus, Ohio Schedule of Revenues, Expenditures and Exhibit B-57 Changes in Fund Balance - Budget and Actual Capitol South Budget Basis Year ended December 31, 2003
Variance with Budgeted Amounts Final Budget- Actual Positive Original Final Amounts (Negative) Revenues Miscellaneous $ 445,623 $ 445,623 $ 445,623 $ - Total revenues 445,623 445,623 445,623 - Expenditures Current General government City attorney Contractual services - 20,000 20,000 - Total city attorney - 20,000 20,000 - Total general government - 20,000 20,000 - Development Development administration Contractual services - 114,810 114,810 - Total development administration - 114,810 114,810 - Housing Contractual services - 150,000 150,000 - Total Housing - 150,000 150,000 - Total development - 264,810 264,810 - Total expenditures - 284,810 284,810 -
Excess of revenues over expenditures 445,623 160,813 160,813 -
Other financing sources (uses) Operating transfers in 1,500,000 1,500,000 1,500,000 - Operating transfers out (1,547,529) (1,903,742) (1,903,742) - Total other financing sources (uses) (47,529) (403,742) (403,742) -
Excess (deficiency) of revenues and other financing sources over expenditures and other uses 398,094 (242,929) (242,929) - Fund balance at beginning of year 12,122,666 12,122,666 12,122,666 - Lapsed encumbrances 453,331 453,331 453,331 - Fund balance at end of year $ 12,974,091 $ 12,333,068 $ 12,333,068 $-
206 City of Columbus, Ohio
Internal Service Fundss
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government, generally on a cost-reimbursement basis. The title of the funds indicates the type of service provided. The Internal Service Funds are:
• Employee Benefits • Fleet Management • Information Services • Purchasing/Contract • Telecommunications • Land Acquisition
207 City of Columbus, Ohio Exhibit C-1 Combining Statement of Net Assets Internal Service Funds December 31, 2004 (amounts expressed in thousands)
Employee Fleet Information Purchasing/ Telecom- Land Benefits Management Services Contract munications Acquisition Total ASSETS Current assets: Cash and cash equivalents Cash and investments with treasurer $ 6,437 $ 832 $ 3,309 $ - $ 22 $ 64 $ 10,664 Receivables (net of allowances for uncollectibles) 978 - 23 - 1 - 1,002 Due from other funds 297 408 150 - 16 57 928 Inventory - 684 - - - - 684 Total current assets 7,712 1,924 3,482 - 39 121 13,278 Noncurrent assets: Property, plant and equipment, at cost - 4,625 31,978 - 3,065 9 39,677 Less accumulated depreciation - (2,988) (27,557) - (2,454) (2) (33,001) Net property, plant and equipment - 1,637 4,421 - 611 7 6,676 Total noncurrent assets: - 1,637 4,421 - 611 7 6,676 208 Total assets 7,712 3,561 7,903 - 650 128 19,954 LIABILITIES Current liabilities: Accounts payable 2,595 1,023 378 - 5 - 4,001 Due to other funds - 17 41 - 1 - 59 Accrued interest payable - 1 68 - - - 69 Accrued wages and benefits 5,040 302 395 - 8 27 5,772 Accrued vacation and sick leave 77 456 570 - - 8 1,111 Current portion of: Bonds payable - 30 615 - - - 645 Total current liabilities 7,712 1,829 2,067 - 14 35 11,657 Noncurrent liabilities: Bonds payable - 420 4,744 - - - 5,164 Total noncurrent liabilities: - 420 4,744 - - - 5,164 Total liabilities 7,712 2,249 6,811 - 14 35 16,821
NET ASSETS Invested in capital assets - 1,187 (938) - 611 7 867 Unrestricted - 125 2,030 - 25 86 2,266 Total net assets $ - $ 1,312 $ 1,092 $ -$ 636 $ 93 $ 3,133 City of Columbus, Ohio Exhibit C-2 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Employee Fleet Information Purchasing/ Telecom- Land Benefits Management Services Contract munications Acquisition Total OPERATING REVENUES Charges for service$ 62,454 $ 19,566 $ 15,687 $ - $ 191 $ 603 $ 98,501 Other 982 93 59 - 1 2 1,137 Total operating revenues 63,436 19,659 15,746 - 192 605 99,638
OPERATING EXPENSES Personal services 1,051 7,521 8,972 - 196 617 18,357 Materials and supplies 25 10,033 2,163 - 40 16 12,277 Contractual services 68,516 2,949 5,879 80 69 54 77,547 Depreciation - 291 1,136 - 160 2 1,589 Other ------Total operating expenses 69,592 20,794 18,150 80 465 689 109,770
209 Operating income (loss) (6,156) (1,135) (2,404) (80) (273) (84) (10,132)
Nonoperating revenues (expenses) Interest expense - (21) (201) - - - (222) Other, net - (16) 952 - 17 - 953 Total nonoperating revenues (expenses) - (37) 751 - 17 - 731 Income before transfers (6,156) (1,172) (1,653) (80) (256) (84) (9,401)
Transfers in - - - - 2 - 2 Transfers out - - - (2) - - (2) Net income (loss) (6,156) (1,172) (1,653) (82) (254) (84) (9,401) Total net assets at beginning of year 6,156 2,484 2,745 82 890 177 12,534 Total net assets at end of year $ - $ 1,312 $ 1,092 $ - $ 636 $ 93 $ 3,133 Exhibit C-3 City of Columbus, Ohio Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Employee Fleet Information Purchasing/ Telecom- Land Benefits Management Services Contract munications Acquisition Total
OPERATING ACTIVITIES: Quasi external operating receipts $ 62,181 $ 19,372 $ 15,732 $ - $ 182 $ 560 $ 98,027 Cash paid to employees (1,059) (7,502) (8,863) - (197) (621) (18,242) Cash paid to suppliers (69,247) (12,602) (8,014) (80) (108) (70) (90,121) Other receipts - 66 220 - - - 286 Other payments ------
Net cash provided (used) by operating activities (8,125) (666) (925) (80) (123) (131) (10,050) NONCAPITAL FINANCING ACTIVITIES Transfers in - - - - 2 - 2
210 Transfers out - - - (2) - - (2) Net cash provided (used) by noncapital financing activities - - - (2) 2 - -
CAPITAL FINANCING ACTIVITIES: Purchases of property, plant, and equipment - - (145) - - - (145) Proceeds from issuance of bonds and notes - - 2,730 - - - 2,730 Principal payments on bonds and notes - (30) (735) - - - (765) Interest paid on bonds and notes - (21) (145) - - - (166) Net cash provided (used) by capital financing activities - (51) 1,705 - - - 1,654
Increase (decrease) in cash and cash equivalents (8,125) (717) 780 (82) (121) (131) (8,396) Cash and cash equivalents at beginning of year 14,562 1,549 2,529 82 143 195 19,060
Cash and cash equivalents at end of year $ 6,437 $ 832 $ 3,309 $ -$ 22 $ 64 $ 10,664 Exhibit C-3 (continued) City of Columbus, Ohio Combining Statement of Cash Flows Internal Service Funds For the Year Ended December 31, 2004 (amounts expressed in thousands)
Employee Fleet Information Purchasing/ Telecom- Land Benefits Management Services Contract munications Acquisition Total
Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (loss) $ (6,156) $ (1,135) $ ( 2,404) $ (80) $ (273) $ (84) $ (10,132) Depreciation - 291 1 ,136 - 160 2 1,589 Amortization, net - 197 - - - 197 Decrease (increase) in operating assets and increase (decrease) in operating liabilities: Receivables (978) - 7 - 2 - ( 969) Due from other funds (289) (282) (85) - (14) (50) ( 720) Inventory - 239 - - - - 239
211 Accounts payable -- net of items affecting property, plant and equipment (201) 141 23 - 1 - ( 36) Due to other funds - 17 41 - 1 - 59 Accrued wages and benefits (497) 67 32 - - 3 ( 395) Accrued vacation and sick leave (4) (4) 128 - - (2) 118
Net cash provided (used) by operating activities $ (8,125) $ (666) $ (925) $ (80) $ (123) $ (131) $ (10,050) City of Columbus, Ohio
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City of Columbus, Ohio
Fiduciary Funds - Agency Fundss
Agency funds - used to account for assets held by the government as an agent for individuals, private organizations, other governments, and/or other funds. Assets held for other funds or governments include payroll taxes and other employee withholdings and income taxes and utility charges collected by the City on behalf of other governments. Their titles are descriptive of their nature. They are:
• Payroll Deposit • Police Property Room Deposit • Garnishments • Suburb Utility Surcharges • Unclaimed money • Suburb Income Tax • Short North SID Deposit • City Treasurer’s Deposit • Capital Crossroads SID • Purchasing Deposit • Health Deposit • Recreation Deposit • Construction Insp. Deposit • Development Deposit • City Auditor’s Deposit • Convention Facility Tax • City Attorney’s Deposit • Service Department Deposit • Safety Agency Deposit
213 City of Columbus, Ohio Exhibit D-1 Schedule of Changes in Assets and Liabilities Agency Funds—Individual Fund Grouping For the Year Ended December 31, 2004
Assets Liabilities Balance Balance Balance Balance January 1, December 31, January 1, December 31, Agency Funds 2004 Additions Deletions 2004 2004 Additions Deletions 2004
Payroll deposit $ 42,084,492 285,853,260 273,102,122 54,835,630 $ 42,084,492 285,853,260 273,102,122 54,835,630
Garnishments - 15,216 15,216 - - 15,216 15,216 -
Unclaimed money 871,359 289,113 51,862 1,108,610 871,359 289,113 51,862 1,108,610
Short North SID deposit - 90,153 90,153 - - 90,153 90,153 -
Capital Crossroads SID - 1,249,619 1,249,619 - - 1,249,619 1,249,619 -
Health deposit 439,300 1,299,540 1,478,337 260,503 439,300 1,299,540 1,478,337 260,503
Construction Insp. deposit 5,166,036 5,184,667 4,451,243 5,899,460 5,166,036 5,184,667 4,451,243 5,899,460 214 City auditor's deposit 108,838 1,281 - 110,119 108,838 1,281 - 110,119
City attorney's deposit 23,519 21,000 8,782 35,737 23,519 21,000 8,782 35,737
Safety agency deposit 57,890 177,295 166,046 69,139 57,890 177,295 166,046 69,139
Police property room deposit 1,368,613 1,410,215 1,027,189 1,751,639 1,368,613 1,410,215 1,027,189 1,751,639
Suburb utility surcharges 362,438 4,621,910 4,608,704 375,644 362,438 4,621,910 4,608,704 375,644
Suburb income tax 2,354,602 22,796,107 23,615,591 1,535,118 2,354,602 22,796,107 23,615,591 1,535,118
City treasurer's deposit 48,475 247,173 240,713 54,935 48,475 247,173 240,713 54,935
Purchasing deposit 223,656 17,734 23,734 217,656 223,656 17,734 23,734 217,656
Recreation deposit 30,477 150,987 153,939 27,525 30,477 150,987 153,939 27,525
Development deposit 885,321 836,344 559,327 1,162,338 885,321 836,344 559,327 1,162,338
Convention facility tax - 13,332,312 13,332,312 - - 13,332,312 13,332,312 -
Service department deposit 946,747 862,048 830,255 978,540 946,747 862,048 830,255 978,540
Total all agency funds $ 54,971,763 338,455,974 325,005,144 68,422,593 $ 54,971,763 338,455,974 325,005,144 68,422,593 STATISTICAL SECTION
City of Columbus, Ohio
Statistical Sections
This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. These tables are presented in accordance with Governmental Accounting Standards Board (GASB) Statement No. 44, Economic Condition Reporting: The Statistical Section.
Contents Tables
Financial Trends 1 – 4 These schedules contain trend information to help understand how the City’s financial performance and well- being have changed over time.
Revenue Capacity 5 – 10 These schedules contain information to help assess the City’s most significant local revenue sources.
Debt Capacity 11 – 16 and 31 These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information 17 - 29 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
Operating Information 30 These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB 34 in 2001; schedules presenting government-wide information include information beginning in that year.
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City of Columbus, Ohio
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City of Columbus, Ohio Table 1 Net Assets by Component, Last Four Fiscal Years (accrual basis of accounting) (amounts expressed in thousands)
1 2001 2002 2003 2004 Governmental activities Invested in capital assets, net of related debt $ 423,395 462,232 588,676 686,418 Restricted 357,872 367,405 298,983 276,223 Unrestricted 169,438 79,389 69,227 105,274 Total governmental activities net assets 950,705 909,026 956,886 1,067,915
Business-type activities Invested in capital assets, net of related debt 399,310 431,210 528,665 623,255 Restricted 70,059 106,656 61,587 1,755 Unrestricted 148,495 172,149 138,434 143,641 Total business-type activities net assets 617,864 710,015 728,686 768,651
Primary government Invested in capital assets, net of related debt 822,705 893,442 1,117,341 1,309,673 Restricted 427,931 474,061 360,570 277,978 217 Unrestricted 317,933 251,538 207,661 248,915 Total primary government net assets $ 1,568,569 1,619,041 1,685,572 1,836,566
1 Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements City of Columbus, Ohio Changes in Net Assets, Last Four Fiscal Years (accrual basis of accounting) Table 2 (amounts expressed in thousands)
1 2001 2002 2003 2004 Expenses Governmental activities: General government $ 84,303 88,323 84,083 84,398 Public service 121,465 127,055 124,418 136,953 Public safety 349,526 363,271 371,649 401,917 Development 61,798 55,971 53,206 60,348 Health 37,392 38,690 37,229 37,191 Recreation and parks 73,442 77,834 76,780 85,012 Public utilities 12,965 - - - Interest on long-term debt 42,497 37,845 38,036 33,660 Total governmental activities expenses 783,388 788,989 785,401 839,479
Business-type activities: Water 91,741 91,910 91,796 96,381 Sanitary Sewer 106,243 107,459 114,522 114,721 Storm Sewer - 18,321 18,606 22,172 Electricity 53,929 54,181 54,872 56,276
218 Total business-type activities expenses 251,913 271,871 279,796 289,550 Total primary government expenses $ 1,035,301 1,060,860 1,065,197 1,129,029
Program Revenue Governmental activities: Charges for services: General government $ 45,710 53,865 54,586 54,857 Public service 18,265 15,623 13,855 15,462 Public safety 5,858 6,529 11,975 24,584 Development 10,681 15,099 16,190 17,310 Health 7,562 7,895 8,044 5,879 Recreation and parks 8,014 9,437 10,350 11,847 Public utilities 17,699 - - - Operating grants and contributions 92,906 101,767 104,892 123,855 Capital grants and contributions 40,171 32,539 43,837 48,920 Total governmental activities program revenue 246,866 242,754 263,729 302,714
Business-type activities: Charges for services: Water 95,427 96,492 93,305 104,929 Sanitary Sewer 115,007 119,996 115,386 130,296 Storm Sewer - 20,403 20,878 24,271 Electricity 51,677 54,752 56,723 58,633 Capital grants and contributions 502 411 299 1,599 Total business-type activities program revenue 262,613 292,054 286,591 319,728 Total primary government program revenue $ 509,479 534,808 550,320 622,442 Net (Expense)/Revenue Governmental activities $ (536,522) (546,235) (521,672) (536,765) Business-type activities 10,700 20,183 6,795 30,178 Total primary government net expense $ (525,822) (526,052) (514,877) (506,587)
General Revenues and Other Changes in Net Assets Governmental activities: Income taxes $ 435,341 432,013 436,842 454,999 Shared revenues 61,862 55,431 56,878 58,935 Property taxes 40,881 41,520 45,660 45,891 Investment earnings 29,379 14,195 8,196 7,288 Hotel/Motel taxes 9,287 11,037 11,440 11,731 Municipal motor vehicle tax 3,030 2,982 2,966 3,066 Miscellaneous 16,288 7,514 13,362 68,296 Transfers (2,000) (60,136) (5,812) (2,412) Total governmental activities general revenues and other changes 594,068 504,556 569,532 647,794
Business-type activities: Investment earnings 8,024 6,393 2,975 2,340 Miscellaneous 2,087 5,439 3,089 5,035 Transfers 2,000 60,136 5,812 2,412 Total business-type activities general revenues and other changes 12,111 71,968 11,876 9,787 Total primary government general revenues and other changes $ 606,179 576,524 581,408 657,581
219 Changes in Net Assets Governmental activities $ 57,546 (41,679) 47,860 111,029 Business-type activities 22,811 92,151 18,671 39,965 Total primary government $ 80,357 50,472 66,531 150,994
1 Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements. City of Columbus, Ohio Table 3 Fund Balances, Governmental Funds (modified accrual basis of accounting) (amounts expressed in thousands)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 General Fund Reserved $ 10,131 16,428 14,154 17,606 21,148 27,317 17,347 11,633 14,539 10,518 Unreserved, reported in: Designated for future years' expenditures 11,220 13,686 16,209 31,811 33,660 35,521 37,884 39,573 30,471 66,753 Undesignated 40,346 24,227 36,833 46,492 49,404 49,075 40,134 7,652 8,120 26,972 Total general fund 61,697 54,341 67,196 95,909 104,212 111,913 95,365 58,858 53,130 104,243
General Bond Retirement Fund Reserved ------Unreserved 1,608 1,892 1,640 1,582 1,463 1,692 1,646 1,468 1,326 1,162 Total general bond retirement fund 1,608 1,892 1,640 1,582 1,463 1,692 1,646 1,468 1,326 1,162 220 Special Income Tax Fund Reserved 7,153 5,319 6,412 6,412 23,350 8,349 1,606 7,158 34,356 39,861 Unreserved 65,285 70,070 81,228 92,639 87,102 116,351 139,682 144,642 116,893 132,345 Total special income tax fund 72,438 75,389 87,640 99,051 110,452 124,700 141,288 151,800 151,249 172,206
Other Governmental Funds Reserved 113,302 116,218 119,063 158,045 225,388 225,473 211,763 163,048 186,757 226,330 Unreserved, reported in: Special revenue funds (8,198) (7,931) (2,788) (19,305) ( 33,297) (46,787) (45,666) (53,358) (49,760) (50,601) Debt service funds (7,764) (914) (7,678) 10,428 (55) 15,804 19,850 16,967 15,325 19,034 Capital projects funds (598) 14,050 15,143 47,184 54,545 89,886 16,949 73,449 (19,012) 40,522 Total other governmental funds 96,742 121,423 123,740 196,352 246,581 284,376 202,896 200,106 133,310 235,285
Fund balances - reclassified - - - - - 2,580 - - - -
Total Fund Balances, Governmental Funds $ 232,485 253,045 280,216 392,894 462,708 525,261 441,195 412,232 339,015 512,896 City of Columbus, Ohio Table 4 Changes in Fund Balances, Governmental Funds (modified accrual basis of accounting) (amounts expressed in thousands) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 REVENUES Income taxes $ 312,257 325,131 349,429 381,377 410,964 420,812 434,986 435,567 438,993 458,819 Property taxes 29,507 30,132 31,856 33,495 34,403 39,048 40,881 41,520 45,660 45,891 Grants and subsidies 55,256 45,865 58,795 63,779 53,585 56,366 77,080 81,392 86,992 110,909 Investment income 16,097 16,644 18,622 21,502 20,614 36,242 29,379 14,195 8,196 7,288 Special assessments 483 278 196 161 161 179 100 99 95 64 Licenses and permits 10,553 10,243 11,840 14,229 17,426 18,229 20,133 23,567 25,209 25,020 Shared revenues 63,137 66,885 70,359 79,409 81,577 86,455 85,374 79,634 81,474 83,338 Charges for services 56,805 52,682 54,780 53,441 54,235 62,201 73,196 57,053 60,938 65,909 Fines and forfeits 13,943 13,999 16,182 15,319 15,214 15,196 15,975 19,108 21,717 22,382 Miscellaneous 37,491 27,222 38,062 55,894 45,833 47,307 44,473 42,064 50,922 108,557 Total revenues 595,529 589,081 650,121 718,606 734,012 782,035 821,577 794,199 820,196 928,177
EXPENDITURES Current: General government 61,418 62,352 60,084 72,011 65,798 72,610 81,858 85,963 82,107 81,532 Public service 55,442 58,269 65,880 69,067 77,414 81,400 95,894 90,588 90,279 95,825 Public safety 224,158 241,863 256,283 265,701 291,930 322,963 342,649 355,237 363,100 385,727 Development 40,127 26,995 36,843 42,031 43,832 42,357 52,421 54,068 52,077 58,165 Health 28,102 29,233 30,827 33,126 34,476 36,712 37,529 38,678 37,106 36,640 Recreation and parks 44,276 48,169 50,622 53,624 55,362 62,501 68,662 71,696 71,290 77,450 Public utilities 10,248 10,338 10,711 11,938 12,327 12,963 11,100 - - - Capital outlay 73,003 83,301 106,114 109,981 140,064 123,620 118,733 113,954 97,197 127,841 Debt service:
221 Principal retirement and payment of obligation under capitalized lease 65,176 68,564 70,934 101,489 60,851 60,388 64,772 70,984 120,463 80,919 Interest and fiscal charges 31,757 30,045 31,116 33,516 35,712 38,929 42,466 37,866 40,159 34,486 Total expenditures 633,707 659,129 719,414 792,484 817,766 854,443 916,084 919,034 953,778 978,585 Excess(deficiency) of revenues over expenditures (38,178) (70,048) (69,293) (73,878) (83,754) (72,408) (94,507) (124,835) (133,582) (50,408)
OTHER FINANCING SOURCES (USES) Transfers in 63,477 69,462 75,364 71,233 88,432 86,024 91,229 85,832 159,526 125,568 Transfers out (63,477) (69,462) (75,364) (71,233) (98,532) (91,535) (93,229) (123,589) (146,862) (127,980) Proceeds from bonds and long-term notes issued 69,481 100,825 96,464 141,370 163,668 137,892 12,441 133,629 43,422 210,208 Refunding bonds issued - - - 55,299 - - - - - 38,460 Payment to refunded bond escrow agent - - - (30,199) - - - - - (32,470) Redemption of refunded bonds ------(8,940) Premium on bond issuance ------4,279 17,443 Capital lease ------2,000 Total other financing sources (uses) 69,481 100,825 96,464 166,470 153,568 132,381 10,441 95,872 60,365 224,289 Net change in fund balance before cumulative effect of change in accounting principle 31,303 30,777 27,171 92,592 69,814 59,973 (84,066) (28,963) (73,217) 173,881
Cumulative effect of change in accounting principle - - - 25,878 ------Net change in fund balance 31,303 30,777 27,171 118,470 69,814 59,973 (84,066) (28,963) (73,217) 173,881 Fund balances—beginning of year 201,182 232,485 253,045 280,216 392,894 462,708 525,261 441,195 412,232 339,015 Residual equity transfers (5,791) ------Fund balances—reclassified - (10,217) - - - 2,580 - - - - Fund balances—end of year $ 232,485 253,045 280,216 392,895 462,708 525,261 441,195 412,232 339,015 512,896 Table 5 City of Columbus, Ohio
Income Tax Revenue by Payer Type Net of Refunds Budget (Cash) Basis (in thousands, except %)
Individual Business Accounts Non- % of Total Business Year Withholding % of total withholding total Individual % of total Accounts % of total Total
1995 $ 256,992 82.4%$ 15,906 5.1%$ 272,898 87.5%$ 38,986 12.5%$ 311,884
1996 272,567 83.5% 16,321 5.0% 288,888 88.5% 37,539 11.5% 326,427
1997 285,055 82.9% 16,505 4.8% 301,560 87.7% 42,294 12.3% 343,854
1998 317,534 82.5% 19,245 5.0% 336,779 87.5% 48,111 12.5% 384,890
1999 332,396 82.6% 18,511 4.6% 350,907 87.2% 51,510 12.8% 402,417
2000 355,926 83.9% 18,666 4.4% 374,592 88.3% 49,635 11.7% 424,227
2001 366,960 83.6% 20,192 4.6% 387,152 88.2% 51,795 11.8% 438,947
2002 371,140 84.8% 21,008 4.8% 392,148 89.6% 45,517 10.4% 437,665
2003 374,694 85.3% 21,524 4.9% 396,218 90.2% 43,048 9.8% 439,266
2004 384,106 84.6% 22,701 5.0% 406,807 89.6% 47,219 10.4% 454,026
Income Tax Revenue Fund Distribution Net of Refunds (in thousands, except %)
Budget (Cash) Basis GAAP (Modified Accrual) Basis Debt Other Debt Other Service Governmental % Increase General Service Governmental % Increase Year General Fund Funds Funds Total (Decrease) Fund Funds Funds Total (Decrease)
1995 $ 234,030 77,854 - $ 311,884 7.53% $234,309 77,947 - $ 312,256 7.76% 1996 244,820 81,607 - 326,427 4.66% 243,848 81,283 - 325,131 4.12% 1997 257,891 85,963 - 343,854 5.34% 262,072 87,357 - 349,429 7.47% 1998 288,668 96,222 - 384,890 11.93% 286,034 95,343 - 381,377 9.14% 1999 301,794 100,623 - 402,417 4.55% 308,223 102,741 - 410,964 7.76% 2000 318,170 106,057 - 424,227 5.42% 315,610 105,202 - 420,812 2.40% 2001 329,210 109,737 - 438,947 3.47% 326,259 108,727 - 434,986 3.37% 2002 328,205 109,402 58 437,665 -0.29% 326,612 108,897 58 435,567 0.13% 2003 329,282 109,761 223 439,266 0.37% 329,077 109,693 223 438,993 0.79% 2004 340,388 113,463 175 454,026 3.36% 343,982 114,662 175 458,819 4.52%
222 City of Columbus, Ohio Table 6 Property Tax Levies and Collections Last Ten Fiscal Years Percent of Percent of outstanding Current Percent Delinquent Total total tax Outstanding delinquent Fiscal Total tax of levy tax tax collections delinquent taxes to year tax levy collections collected collections collections to tax levy taxes tax levy
Franklin County (1)
1995$ 28,987,569 28,318,667 97.7 1,072,973$ 29,391,640 101.4$ 2,069,850 7.1 % 1996 29,774,228 28,920,406 97.1 963,489 29,883,895 100.4 2,285,876 7.7 1997 31,591,109 30,840,137 97.6 1,039,115 31,879,252 100.9 1,918,120 6.1 1998 32,534,565 31,818,835 97.8 1,093,519 32,912,354 101.2 2,108,344 6.5 1999 34,666,856 33,960,069 98.0 706,787 34,666,856 100.0 2,405,944 6.9 2000 38,579,140 37,295,711 96.7 1,063,510 38,359,221 99.4 2,889,008 7.5 2001 40,143,446 38,774,229 96.6 1,439,087 40,213,316 100.2 3,233,123 8.1 2002 41,113,475 38,954,842 94.7 1,671,021 40,625,863 98.8 3,756,375 9.1 2003 44,572,666 42,426,169 95.2 2,062,871 44,489,040 99.8 4,036,335 9.1 2004 49,221,225 46,801,051 95.1 2,298,431 49,099,482 99.8 3,282,982 6.7
223 Fairfield County (1)
2004$ 373,744 342,104 91.5 %$ 7,485 349,589 93.5 %$ 37,956 10.2 %
Delaware County (1)
2004$ 356,096 364,411 102.3 %$ 7,943 372,354 104.6 %$ 17,118 4.8 %
(1) The City of Columbus entered Fairfield County in 1975 and Delaware County in 1991. Because the vast majority of property within the City lies within Franklin County, the above table demonstrates a ten year history of that property within Franklin County, but only current year data for Fairfield and Delaware counties
Sources: Franklin, Fairfield, and Delaware County Auditors City of Columbus, Ohio Table 7 Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (in thousands, except %) Percent of total assessed Real Property Personal Property Public Utilities Total to total Estimated Estimated Estimated Estimated estimated Tax Assessed actual Assessed actual Assessed actual Assessed actual actual year For value value value value (2) value value (2) value value value Franklin County (1) 1995 1996$ 7,523,751 21,496,431 1,365,419 5,461,676 518,908 1,482,594$ 9,408,078 $ 28,440,701 33.1 % 1996 1997 8,043,277 22,980,791 1,464,285 5,857,140 519,964 1,485,611 10,027,526 30,323,542 33.1 1997 1998 8,300,546 23,715,846 1,523,089 6,092,356 539,815 1,542,329 10,363,450 31,350,531 33.1 1998 1999 8,710,415 24,886,900 1,547,605 6,190,420 540,892 1,545,406 10,798,912 32,622,726 33.1 1999 2000 9,991,033 28,545,809 1,619,657 6,478,628 558,957 1,597,020 12,169,647 36,621,457 33.2 2000 2001 10,312,863 29,465,323 1,746,957 6,987,828 554,901 1,585,431 12,614,721 38,038,582 33.2 2001 2002 10,632,901 30,379,717 1,754,763 7,019,052 463,164 1,323,326 12,850,828 38,722,095 33.2 2002 2003 11,958,533 34,167,237 1,852,911 7,411,644 427,848 1,222,423 14,239,292 42,801,304 33.3 2003 2004 12,244,724 34,984,926 1,513,220 6,305,083 441,780 1,262,229 14,199,724 42,552,238 33.4 2004 2005 12,480,949 35,659,856 1,430,924 5,990,264 468,904 1,320,470 14,380,777 42,970,590 33.5 224 Fairfield County (1) 2004 2005$ 131,137 374,678 1,947 7,789 1,676 4,788 134,760 387,255 34.8 %
Delaware County (1) 2004 2005$ 154,353 441,007 42,714 170,857 6,665 19,042 203,732 630,906 32.3 %
(1) The City of Columbus entered Fairfield County in 1975 and Delaware County in 1991. Because the vast majority of property within the City lies within Franklin County, the above table demonstrates a ten year history of that property within Franklin County, but only current year data for Fairfield and Delaware Counties. (2) Estimated actual values for Personal Property and Public Utilities have been calculated by the respective county auditors.
Sources: Franklin, Fairfield, and Delaware County Auditors. City of Columbus, Ohio Table 8 Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years (Per $ 1,000 of Assessed Valuation)
Effective Rate (1) City Joint Vocational Class 1 Class 2 Total General Police Fire Total School Fiscal Year Res/Agr All other Rate Fund Pensions Pensions City County School Library and Other
Franklin County (2)
1995 for 1996 49.64 56.12 73.14 2.54 0.30 0.30 3.14 14.82 52.98 2.20 - 1996 for 1997 52.00 60.44 78.57 2.54 0.30 0.30 3.14 15.12 58.11 2.20 - 1997 for 1998 52.05 60.39 78.60 2.54 0.30 0.30 3.14 15.22 58.04 2.20 - 1998 for 1999 54.12 62.33 80.83 2.54 0.30 0.30 3.14 17.54 57.95 2.20 - 1999 for 2000 49.04 59.56 80.55 2.54 0.30 0.30 3.14 17.64 57.57 2.20 - 2000 for 2001 48.63 58.62 80.35 2.54 0.30 0.30 3.14 17.64 57.37 2.20 - 2001 for 2002 48.39 58.16 80.35 2.54 0.30 0.30 3.14 17.64 57.37 2.20 -
225 2002 for 2003 46.20 57.41 81.78 2.54 0.30 0.30 3.14 17.64 58.80 2.20 - 2003 for 2004 46.37 58.05 82.16 2.54 0.30 0.30 3.14 17.64 59.18 2.20 - 2004 for 2005 55.71 67.94 91.43 2.54 0.30 0.30 3.14 18.44 67.65 2.20 -
Fairfield County (2)
2004 for 2005 47.57 48.62 89.95 2.30 0.30 0.30 2.90 7.55 77.50 - 2.00
Delaware County (2)
2004 for 2005 47.71 46.49 71.69 1.50 0.30 0.30 2.10 5.30 61.00 0.09 3.20
(1) The effective rate is determined by multiplying the total rate by a composite reduction factor which is determined annually by the State Tax Commissioner to adjust for changes in the valuation of the property tax base.
(2) The City of Columbus entered Fairfield County in 1975 and Delaware County in 1991. Because the vast majority of property within the City lies within Franklin County, the above table demonstrates a ten year history of that property within Franklin County, but only current year data for Fairfield and Delaware counties.
Sources: Franklin, Fairfield, and Delaware County Auditors. City of Columbus, Ohio Table 9 Principal Property Taxpayers Franklin County December 31, 2004
% of total Assessed assessed valuation valuation Public Utilities (in thousands) 1. Ohio Bell Telephone Company (Ameritech) $ 918,393 6.39 % 2. Columbus Southern Power Company 239,084 1.66 3. New Par 41,045 0.29 4. Columbia Gas of Ohio Inc. 38,140 0.27
Real Estate 1. Nationwide Mutual Insurance Company 93,000 0.65 2. Huntington Center 58,450 0.41 3. Distribution Land Corp. 49,062 0.34 4. Capitol South Community 30,989 0.22 5. Duke Realty LP 25,159 0.17 6. Equitable Life Assurance 24,815 0.17 7. American Electric Power 23,625 0.16 8. Olentangy Commons 18,267 0.13 9. Battelle Memorial 18,094 0.13 10. Anheuser-Busch, Inc. 17,776 0.12
Tangible Personal Property 1. Anheuser Busch Inc. 79,074 0.55 2. Abbott Laboratories 35,982 0.25 3. Roxane Laboratories Inc. 30,675 0.21 4. Techneglas, Inc. 26,149 0.18 5. Lucent Technologies, Inc. 18,916 0.13 6. Sears Roebuck & Company 18,669 0.13 7. Amerisource Corporation 17,813 0.12 8. Kal Kan Foods Inc. 16,827 0.12 9. IBM Credit LLC 16,468 0.11 10. Big Lots Stores, Inc. 16,081 0.11
Total Principal Property Taxpayers 1,872,553 13.02
All Others 12,508,224 86.98 Total Assessed Valuation in Franklin County $ 14,380,777 100.00 %
Source: Franklin County Auditor
226 City of Columbus, Ohio Table 10 Special Assessment Billings and Collections Last Ten Fiscal Years
Special Special assessment assessment requirements Special Fiscal debt service billed by assessments year requirements County Auditor collected
1995$ 103,869 $ N.A.$ 163,759
1996 291,322 251,329 279,809
1997 270,904 312,006 344,745
1998 749,068 1,234,815 525,163
1999 453,997 1,970,085 1,374,804
2000 448,576 2,303,866 1,233,392
2001 388,785 1,946,808 916,666
2002 431,248 3,334,082 2,065,070
2003 519,301 3,350,785 2,188,407
2004 499,531 5,207,588 3,631,394
Responsibility for the billing and collection of special assessments is, under Ohio Law, vested with the County Auditor's office. Data relative to Special assessment requirements billed during 1995 are not available (N.A.).
All Special assessment type debt is general obligation debt of the City.
Sources: City of Columbus, Ohio, City Auditor and Franklin County Auditor.
227 City of Columbus, Ohio Table 11 Statement of Legal Debt Margins December 31, 2004 (in thousands) Total unvoted Total debt limit debt limit Line 10.5% 5.5% 1 Total assessed property value, per 2 Franklin County $ 14,380,777 14,380,777 3 Fairfield County 134,760 134,760 4 Delaware County 203,732 203,732 5 Total (lines 2 through 4)$ 14,719,269 14,719,269 6 Debt limit 10.5% & 5.5% of assessed value (x line 5)$ 1,545,523 809,560 7 Total Outstanding Bond and Note Debt 8 Bonds & Long-Term Notes Payable (excludes long term lease of $2.870 million)$ 1,909,154 950,364 9 Notes, Short-Term 3,330 3,330 10 Total (lines 8 + 9) 1,912,484 953,694 11 Exemptions: 12 Debt Service Fund Balances Applicable to Non-Enterprise G.O. Bonds 182,841 182,841 13 G.O. Assessment Bonds (Non-Enterprise) 75 75 14 G.O. Limited Enterprise debt (Unvoted; supported by enterprise revenues) 15 Water Bonds 49,263 49,263 16 Sanitary Sewer Bonds 19,629 19,629 17 Sanitary Sewer Assessment Notes 1,366 1,366 18 Storm Sewer Bonds 39,843 39,843 19 Electric Bonds 5,347 5,347 20 Electric Assessment Notes 1,964 1,964 21 Airport Bonds 7,680 7,680 22 Total (lines 15 through 21) 125,092 125,092 23 G.O. Unlimited Enterprise debt (Voted; supported by enterprise revenues) 24 Water Bonds 185,191 - 25 Sanitary Sewer Bonds 185,224 - 26 Storm Sewer Bonds 39,645 - 27 Electric Bonds 30,345 - 28 Airport Bonds 940 - 29 Total (lines 24 through 28) 441,345 - 30 Revenue Bonds and Long-Term Notes 31 Water 39,160 39,160 32 Sewer: 33 Sewer Revenue 101,000 101,000 34 OWDA/EPA 341,932 341,932 35 Non-Enterprise Bonds (TIF) 61,585 61,585 36 Non-Enterprise Note (TIF) 4,600 4,600 37 Total (lines 31 through 36) 548,277 548,277 38 Urban Redevelopment Bonds 4,155 4,155 39 Taxable Single Family Mortgage Revenue Note (FNMA) 27 27 40 Total Exemptions (lines 12, 13, 22, 29, 37, 38 and 39) 1,301,812 860,467 41 Net Debt (line 10 less line 40) 610,672 93,227 42 Total Legal Debt Margin (line 6 less line 41)$ 934,851 716,333
43 Percent of Net Debt to Assessed Value (lines 41 / 5) 4.15% 0.63% 44 Percent of Legal Debt Limit 10.50% 5.50% 45 Percent of Legal Debt Margin (line 44 less line 43) 6.35% 4.87%
Source: City of Columbus, Ohio, City Auditor
228 City of Columbus, Ohio Table 12 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Last Ten Fiscal Years (dollar amounts in thousands, except per capita)
Less payable from Ratio of net Enterprise Revenues, TIF general Net Revenues, and CRAA bonded general Less debt General Net debt to bonded Fiscal Assessed Gross service obligation Revenue general assessed debt per Year Population (1) value (2) bonded debt (3) funds (4) bonds (5) bonds (6) bonded debt value capita
1995 665,734$ 9,483,390 $ 1,441,001 73,436 534,083 396,339 $ 437,143 4.61 $ 656.63 1996 675,045 10,130,785 1,472,951 76,367 519,756 408,449 468,379 4.62 693.85 1997 684,928 10,483,853 1,550,476 88,053 554,058 424,708 483,657 4.61 706.14 1998 696,849 10,972,327 1,727,458 118,942 567,085 519,494 521,937 4.76 749.00 1999 698,495 12,397,530 1,786,762 135,216 525,360 546,425 579,761 4.68 830.01 2000 711,470 12,939,074 1,819,875 148,677 480,308 545,775 645,115 4.99 906.74 2001 720,230 13,107,854 1,857,435 160,083 542,989 528,446 625,917 4.78 869.05 2002 734,024 14,551,080 1,898,329 165,985 565,062 569,864 597,418 4.11 813.89
229 2003 743,343 14,488,874 1,677,098 166,839 505,313 482,970 521,976 3.60 702.20 2004 754,876 14,719,269 1,909,154 182,841 564,552 548,304 613,457 4.17 812.66
Sources: (1) U.S. Bureau of Census for 2000; City of Columbus; Department of Trade and Development for 1991-1995; and Mid Ohio Regional Planning Commission for 1996-1999 and 2001-2004. (2) Franklin, Fairfield, and Delaware County Auditors; from Table 4. (3) Gross bonded debt includes long-term notes; excludes short term notes ($3.330 million) and capitalized leases ($2.870 million) in 2004. (4) Debt service fund balances applicable to non-enterprise G.O. bonds only. (5) Includes $8.620 million G.O. governmental type bonds paid by Columbus Regional Airport Authority (CRAA); excludes $15.159 million storm sewer G.O. debt not supported by enterprise in 2004. (6) Includes long term Ohio Water Development Authority/EPA notes, FNMA note, TIF revenue bonds and long term TIF notes. City of Columbus, Ohio Table 13 Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures Last Ten Fiscal Years (in thousands, except %) Ratio of debt Total Total service to total Fiscal debt general governmental general governmental year Principal Interest service (1) expenditures (2) expenditures
1995$ 38,476 31,523 $ 69,999 $ 546,298 12.81 % 1996 42,264 30,045 72,309 567,304 12.75 1997 44,634 31,116 75,750 604,776 12.53 1998 50,689 33,516 84,205 656,843 12.82 1999 60,840 33,186 94,026 698,063 13.47 2000 59,916 37,413 97,329 750,275 12.97
230 2001 64,743 40,928 105,671 809,639 13.05 2002 70,362 36,292 106,654 819,033 13.02 2003 74,753 38,555 113,308 825,025 13.73 2004 80,525 34,484 115,009 864,609 13.30
(1) Includes all general obligation bond debt service other than proprietary; excludes FNMA revenue note ($14,396 principal and $2,378 interest) and TIF revenue bonds ($380,000 principal) (2) Includes Total Governmental Funds expenditures of $978.585 million, exclusive of Capital Projects Funds expenditures of $113.976 million, presented on modified accrual basis of accounting for 2004.
Source: City of Columbus, Ohio, City Auditor. City of Columbus, Ohio Table 14
Computation of Direct and Overlapping Debt
Debt of the City, authorized by the Council but not by a vote of the electors, is subject to overlapping restrictions with each respective county and school district. Limitations apply to each county total and should not be considered cumulatively. Total debt service charges for any one year of all overlapping debt must not exceed ten mills (1%) of the assessed property value. This determination is made by the respective county auditors each time a subdivision proposes to issue unvoted debt. The most recent data prepared by the county auditors for this purpose is as of December 31, 2004.
Principal Percentage Amount applicable Political subdivision outstanding applicable to Columbus Mills of State of Ohio (in thousands) to Columbus (in thousands) required
Per Franklin County Auditor: Direct City of Columbus $ 357,141 100.00 %$ 357,141 4.5037 Overlapping Franklin County 129,920 57.33 74,483 0.5770 School District 725 23.53 171 0.7782
Total$ 487,786 $ 431,795 5.8589 Per Fairfield County Auditor: Direct City of Columbus $ 3,347 100.00 %$ 3 ,347 4.5037 Overlapping Fairfield County 50,359 4.75 2,392 1.6625 JVSD - 17.48 - 0.0000
Total$ 53,706 $ 5,739 6.1662 Per Delaware County Auditor: Direct City of Columbus $ 5,060 100.00 %$ 5 ,060 4.5037 Overlapping Delaware County 95,280 3.66 3,487 2.0554 JVSD 225 4.74 11 0.0211
Total$ 100,565 $ 8,558 6.5802
The City does not pay general obligation debt service from property taxes. General obligation debt service relating to enterprise funds is paid from the respective enterprise fund. All other general obligation debt service is paid from income taxes, certain charges for services, and payments in lieu of taxes designated by the City for that purpose and accounted for in a debt service fund and from special assessments
231 City of Columbus, Ohio Table 15 Water Enterprise Revenue Bond Coverage 1 Water System Revenue Refunding Bonds Series 1999 1995 through 2004 (in thousands, except coverages)
Line As defined in indenture 1995 1996 1997 1998 1999 2000 2001 2002 2003 2 2004 A Gross revenues, including interest $ 83,464 89,368 94,690 100,108 102,417 95,978 100,506 100,037 95,316 108,060 B Construction and rebate funds interest ------C Revenues (A - B) 83,464 89,368 94,690 100,108 102,417 95,978 100,506 100,037 95,316 108,060 D Gross O & M expenses 56,946 62,409 67,182 69,821 73,420 72,781 78,679 80,109 79,673 83,392 EDepreciation (10,627) (12,430) (12,718) (14,004) (16,413) (15,167) (16,749) (15,446) (15,550) (15,601) FPayment to/for Ohio water rights (1,184) (1,215) (1,150) (1,322) (1,158) (1,204) (1,204) (1,213) (1,267) (1,257) G O & M expenses (D - E - F) 45,135 48,764 53,314 54,495 55,849 56,410 60,726 63,450 62,856 66,534 H Net revenues (C - G) 38,329 40,604 41,376 45,613 46,568 39,568 39,780 36,587 32,460 41,526 ISystem reserve fund balance on January 31 23,000 28,000 32,000 35,000 39,000 37,171 34,371 36,928 36,975 34,201 J O & M expense reserve requirement (G x 10%) (4,514) (4,876) (5,331) (5,450) (5,585) (5,641) (6,073) (6,345) (6,286) (6,653) K System reserve fund available (I - J) 18,486 23,124 26,669 29,550 33,415 31,530 28,298 30,583 30,689 27,548 L Adjusted net revenues (H + K) $ 56,815 63,728 68,045 75,163 79,983 71,098 68,078 67,170 63,149 69,074
M Revenue bonds principal $ 2,240 2,325 2,595 2,770 3,040 3,745 4,020 4,395 4,680 4,950 N Revenue bonds interest 4,422 4,309 4,189 4,050 3,989 2,963 2,756 2,530 2,354 2,181 O General obligation bond principal 12,112 12,517 15,062 16,229 17,431 18,753 18,713 18,658 19,538 20,707
232 P General obligation bond interest 12,687 12,714 12,121 12,522 12,947 12,183 10,647 9,724 10,964 9,754 Q General obligation note interest ------R Payment to/for Ohio water rights 1,184 1,215 1,150 1,322 1,158 1,204 1,204 1,213 1,267 1,257 S Total debt service requirements (M - R) $ 32,645 33,080 35,117 36,893 38,565 38,848 37,340 36,520 38,803 38,849 Rate covenant tests: Adjusted net revenues vs. total debt service Required ratio of lines L ÷ S 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Actual ratio of lines L ÷ S 1.74 1.93 1.94 2.04 2.07 1.83 1.82 1.84 1.63 1.78 Adjusted net revenues vs. revenue bond debt service Required ratio of lines L ÷ (M + N) 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 Actual ratio of lines L ÷ (M + N) 8.53 9.61 10.03 11.02 11.38 10.60 10.05 9.70 8.98 9.69 Bond reserve requirement test: Adjusted net revenues vs. revenue bond debt service Required ratio of lines L ÷ (M + N) 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Actual ratio of lines L ÷ (M + N) 8.53 9.61 10.03 11.02 11.38 10.60 10.05 9.70 8.98 9.69
1 The Water System Revenue Refunding Bonds Series 1999 includes a partial refunding of the Series 1991; both series require three coverage tests. Two rate covenant tests determine if the City is required to increase user rates or engage an independent engineer to assist in determining adequate rates. The bond reserve requirement test determines whether the City will be required to establish a debt service reserve fund. The City has exceeded all coverage requirements. 2 Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
Source: City of Columbus, Ohio, City Auditor. City of Columbus, Ohio Table 16 Sanitary Sewer Enterprise Revenue Bond Coverage 1 Sanitary Sewer System Revenue Refunding Bonds Series 1992 2, 1994, and 2002 1995 through 2004 (in thousands, except coverages)
3 Line As defined in indenture 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 A Gross revenue, including interest $ 117,906 116,972 121,695 129,084 121,110 121,058 119,237 125,795 118,108 133,518 B O & M expenses, net of depreciation (50,232) (48,549) (50,613) (54,226) (55,786) (54,153) (59,568) (61,476) (64,205) (67,778) C Net revenues (A - B) 67,674 68,423 71,082 74,858 65,324 66,905 59,669 64,319 53,903 65,740
D System reserve fund at January 31 24,000 37,000 50,000 60,306 72,000 66,647 66,562 66,562 66,562 60,779 E O & M expense reserve requirement (B x 10%) (5,023) (4,855) (5,061) (5,423) (5,578) (5,415) (5,967) (6,148) (6,421) (6,695) F System reserve fund available (D - E) 18,977 32,145 44,939 54,883 66,422 61,232 60,595 60,414 60,141 54,084 G Adjusted net revenue (C + F) $ 86,651 100,568 116,021 129,741 131,746 128,137 120,264 124,733 114,044 119,824
H Revenue bond principal $ 1,625 1,705 7,620 8,015 8,435 8,890 9,380 9,900 10,940 11,300 I Revenue bond interest 9,581 9,297 9,146 8,652 8,064 8,091 6,902 7,085 3,793 3,362 J General obligation bond principal 18,181 18,106 17,253 17,698 18,320 19,993 20,417 20,478 22,398 22,488 K General obligation bond interest 15,914 14,708 13,519 13,672 13,656 12,401 11,152 11,109 11,675 10,056 L General obligation note interest 3 - - 27 - - 18 - - - M OWDA/EPA principal 2,190 2,922 3,053 5,326 5,604 5,961 7,598 4,830 10,733 12,784 N OWDA/EPA interest 1,989 2,467 2,336 5,027 4,826 4,727 6,199 4,221 9,327 11,543 233 O Total debt service (H - N) $ 49,483 49,205 52,927 58,417 58,905 60,063 61,666 57,623 68,866 71,533
Rate covenant tests: Adjusted net revenues vs. total debt service Required ratio of lines G ÷ O 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Actual ratio of lines G ÷ O 1.75 2.04 2.19 2.22 2.24 2.13 1.95 2.16 1.66 1.68
Adjusted net revenues vs. revenue bond debt service Required ratio of lines G ÷ (H + I) 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 Actual ratio of lines G ÷ (H + I) 7.73 9.14 6.92 7.78 7.99 7.55 7.39 7.34 7.74 8.17
Bond reserve requirement test: Adjusted net revenues vs. revenue bond debt service Required ratio of lines G ÷ (H + I) 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Actual ratio of lines G ÷ (H + I) 7.73 9.14 6.92 7.78 7.99 7.55 7.39 7.34 7.74 8.17
1 The Sanitary Sewer System Refunding Bonds Series 1992 and 1994 require three coverage tests. Two rate covenant tests determine if the City is required to increase user rates or engage an independent engineer to assist in determining adequate rates. The bond reserve requirement test determines whether the City will be required to establish debt service reserve funds. The City has exceeded all coverage requirements. 2 The 1992 bonds were called for redemption by the Trustee on June 1, 2002. These 1992 bonds were refunded (a current refunding) on April 2, 2002 with Series 2002 bonds requiring the same coverage tests. 3 Amounts for 2003 have been adjusted for the prior period adjustment described in Note S of the Notes to the Financial Statements.
Source: City of Columbus, Ohio, City Auditor. City of Columbus, Ohio Table 17 Business Indicators (1) 1995—2004
Square Mile Area Air Scheduled City of Columbus Passengers Airline Freight Year Year End (000) (000 lbs.) (2)
1995 204.3 5,640 98,297 1996 209.2 6,276 82,767 1997 212.0 6,517 81,173 1998 212.5 6,420 60,728 1999 214.7 6,542 51,329 2000 216.6 6,873 49,772 2001 218.6 6,680 33,649 2002 221.2 6,741 23,591 2003 222.5 6,252 23,742 2004 224.2 6,232 20,796
Active Telephone Year Gas Meters Access Lines New Car Sales
1995 359,222 756,432 42,993 1996 364,751 N.A. 87,232 1997 404,742 N.A. 93,666 1998 404,937 N.A. 86,414 1999 414,824 836,971 54,920 2000 419,865 813,214 52,819 2001 427,844 855,027 49,812 2002 444,612 769,332 41,865 2003 442,639 758,364 39,604 2004 444,865 765,244 37,212
All Vehicle Registrations Franklin County Year New Truck Sales Columbus, Ohio (Includes Columbus)
1995 29,984 475,608 745,402 1996 21,910 491,487 772,661 1997 26,699 497,131 777,427 1998 28,838 516,543 795,869 1999 48,856 693,200 1,054,030 2000 38,092 668,609 1,072,923 2001 35,284 692,880 1,084,172 2002 30,654 664,144 1,094,862 2003 31,073 668,534 1,100,170 2004 31,023 690,861 1,117,338
(1) Franklin County data unless otherwise indicated. (2) Includes cargo, freight and mail. Data representative of Columbus Municipal Airport Authority only. N.A. Information not available.
Sources: Columbus Area Chamber of Commerce, Research Department; Columbia Gas of Ohio; Ameritech; Columbus Municipal Airport Authority; The Polk Company, Government Relations; and the State of Ohio, Bureau of Motor Vehicles.
234 City of Columbus, Ohio Table 18 Growth in Land Area Selected Years
Square Square miles at miles Year December 31 annexed (1) 1950 39.977 - 1955 54.406 14.429
1960 91.210 36.804 1965 104.700 13.490
1970 143.894 39.194 1975 173.210 29.316
1980 183.112 9.902 1985 187.316 4.204
1990 196.028 8.712 1991 196.829 0.801 1992 198.344 1.515
1993 199.323 0.979 1994 199.965 0.642 1995 204.279 4.314
1996 209.218 (2) 1.953 1997 212.015 2.797 1998 213.535 1.520
1999 214.676 1.141 2000 216.633 1.957 2001 218.554 1.921
2002 221.232 2.678 2003 222.461 1.229 2004 224.150 1.689
(1) Net of de-annexations. (2) 1996 includes 2.986 square miles resulting from refined remeasurements of City area.
Source: City of Columbus, Division of Engineering and Construction, Maps Section.
235 City of Columbus, Ohio Table 19 Largest Employers in the Greater Columbus Area Ranked by Number of Full-time Employees
1. State of Ohio 26,037 25a. Big Lots, Inc. 2,100 2. Ohio State University 17,361 25b. Discover Financial Services Inc. 2,100 3. Federal Government/United States Postal Service 13,300 (1) 27. Cardinal Health, Inc. 2,000 * Defense Supply Center 2,284 (1) 28. Dispatch Printing Co. 1,900 * Defense Finance & Accounting Service Center 2,072 (1) 29. State Farm 1,795 4. JPMorgan Chase & Co. 12,130 30. National City Corp. 1,780 5. Nationwide 11,293 31. Alliance Data Systems 1,757 6. OhioHealth 8,398 32. Hilliard City Schools 1,688 7. Columbus Public Schools 8,024 33. NetJets Inc. 1,650 8. City of Columbus 7,919 34. Owens Corning 1,531 9. Limited Brands 7,200 35a. ARC Industries Inc. 1,500 10. Honda of America Mfg. Inc . 6,350 35b. CallTech Communications LLC 1,500 11. Franklin County 6,218 37. Dublin City Schools 1,482 12. Wal-Mart Stores Inc. 6,100 38. United Parcel Service 1,445 13. Mount Carmel Health 5,558 39. Westerville City Schools 1,441 14. Kroger Co. 4,502 40. Ashland Inc. 1,363 15. Wendy's International 4,500 41. TS Tech North America 1,303 16. American Electric Power Company, Inc. 3,900 42. Fairfield Medical Center 1,291 17. Huntington Bancshares Inc. 3,500 43 Worthington Schools 1,257 18. SBC Ohio 3,000 44. Chemical Abstracts Service 1,223 19. Ross Products, division Abbott Laboratories 2,800 45a. Lucent Technologies 1,200 20. Children's Hospital, Inc. 2,706 45b. Verizon Wireless 1,200 21. Medco Health Solutions Inc. 2,528 47. McDonald's Corp. 1,199 22. South-Western City Schools 2,516 48. Anchor Hocking Glass Co. 1,185 23. Battelle 2,368 49. Liebert Corp. 1,169 24. Retail Ventures Inc. 2,170 50. Scott's Co. 1,137
(1) Greater Columbus, excluding Union County federal government employment as of August 2004. This number includes the federal agencies shown above.
Source: Reprinted with permission of Business First of Columbus, Inc. December 24, 2004
236 City of Columbus, Ohio Table 20 Estimated Civilian Labor Force and Annual Average Unemployment Rates 1995—2004
(Labor Force in Thousands) Franklin County Columbus M.S.A. (1) Ohio U.S. Unem- Unem- Unem- Unem- Labor ployment Labor ployment Labor ployment ployment Year force (2) rate (3) force (2) rate (3) force (2) rate (3) rate (3) 1995 562.4 3.3 % 769.4 3.5 % 5,573.0 4.8 % 5.6 % 1996 574.0 2.9 794.0 3.1 5,643.0 4.9 5.4 1997 588.3 2.7 813.7 2.9 5,756.0 4.6 4.9 1998 581.9 2.5 811.8 2.7 5,678.0 4.3 4.5 1999 593.4 2.5 829.9 2.6 5,749.0 4.3 4.2 2000 604.3 2.4 850.8 2.5 5,783.0 4.1 4.0 2001 622.0 2.8 875.5 2.8 5,857.0 4.3 4.8 2002 624.7 4.4 882.9 4.4 5,828.0 5.7 5.8 2003 629.6 4.7 890.6 4.8 5,877.0 5.9 6.0 2004 627.3 4.8 888.8 4.9 5,890.0 6.5 5.4
(1) The Columbus M.S.A. includes Delaware, Fairfield, Franklin, Licking, Madison, and Pickaway counties. (2) Civilian labor force is the estimated number of persons 16 years of age and over, employed and unemployed distributed by place of residence. (3) The unemployment rate is equal to the estimate of unemployed persons divided by the estimated civilian labor force.
Source: Ohio Department of Job and Family Services, Bureau of Labor Market Information (preliminary data that is subject to change).
237 City of Columbus, Ohio Table 21 Estimated Per Capita Income 1995—2004
Columbus M.S.A. (1) Franklin County (1) Ohio (2) United States (2)
Per % of Per % of Per % of Per capita national capita national capita national capita Year income average income average income average income
1995$ 23,910 102.4 %$ 24,943 106.8 %$ 22,560 96.6 %$ 23,359
1996 24,863 101.7 25,959 106.2 23,493 96.1 24,436
1997 25,728 101.7 26,647 105.4 24,163 95.6 25,288
1998 28,454 104.6 29,425 108.2 26,073 95.8 27,203
1999 29,777 104.3 30,820 108.0 27,171 95.2 28,546
2000 30,619 103.9 31,685 107.5 27,977 94.9 29,469
2001 31,343 103.1 32,361 106.4 28,699 94.4 30,413 238 2002 32,043 103.7 32,947 106.6 29,195 94.5 30,906
2003 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
2004 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
(1) Per capita income has been restated for years 1995 to 1996 using revised Bureau of Census population estimates. (2) Per capita income information has been computed using revised Bureau of Census population estimates. Accordingly, all years have been restated and benchmarked against this new data.
N.A. = Information not available.
Source: U.S. Department of Commerce, Division of Regional Measurement, Bureau of Economic Analysis Table 22 City of Columbus, Ohio
Columbus Metropolitan Statistical Area Employment (1) Nonagricultural Wage and Salary Employment in Selected Industries (2) Annual Average Data for 1995—2004 (in thousands, except percent)
Percentage of Total 2003 Industry 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 employment Total 784.4 798.9 814.2 836.2 857.9 888.1 889.9 883.5 872.3 N.A. 100.0 Manufacturing: 93.3 91.6 92.8 93.3 93.0 95.0 91.2 77.0 72.6 N.A. 8.3 Durable Goods 55.8 54.3 55.6 55.2 55.8 57.6 54.9 49.4 45.4 N.A. 5.2 Nondurable Goods 37.5 37.4 37.2 38.1 37.2 37.4 36.3 27.6 27.2 N.A. 3.1
Nonmanufacturing: 691.1 707.3 721.4 742.9 764.9 793.1 798.7 806.5 799.7 N.A. 91.7 Construction 31.2 32.6 35.0 35.5 38.1 40.4 40.1 41.1 38.8 N.A. 4.5 Transportation and Public Utilities 34.5 35.7 36.2 38.0 40.3 42.9 43.1 34.1 35.1 N.A. 4.1
239 Wholesale Trade 39.4 40.2 41.5 42.7 44.2 46.0 45.8 38.4 36.5 N.A. 4.2 Retail Trade 171.3 176.5 171.7 174.4 177.7 184.2 182.8 113.2 108.3 N.A. 12.4 Finance, Insurance, and Real Estate 64.3 67.6 71.2 75.2 77.8 76.8 78.0 74.9 76.1 N.A. 8.7 Services 216.0 220.5 229.1 238.9 247.2 261.5 265.1 359.2 358.6 N.A. 41.1 Government: 133.6 133.7 136.7 137.5 138.9 141.3 143.8 145.6 146.3 N.A. 16.7 Federal Government 15.3 14.2 15.6 14.7 14.3 14.6 13.8 13.6 13.3 N.A. 1.5 State Government 58.0 57.5 58.5 58.6 58.5 58.7 59.6 59.9 60.0 N.A. 6.9 Local Government 60.3 62.0 62.6 64.2 66.1 68.0 70.4 72.1 73.0 N.A. 8.3
(1) Columbus Metropolitan Statistical Area includes Delaware, Franklin, Fairfield, Licking, Madison, and Pickaway counties. (2) Nonagricultural employment excludes farm workers, proprietors, the self-employed, unpaid family workers, and domestic workers. N.A. = Information not available.
Source: Ohio Department of Job and Family Services, Labor Market Information Bureau City of Columbus, Ohio Table 23 School Enrollment Trends in Franklin County 1995—2004
The Columbus Other Total Columbus Ohio State State Community Colleges/ Colleges/ Public Year University College Universities (1) Universities Schools (2) 1995 48,676 15,999 14,432 79,107 62,812 1996 48,352 16,330 14,439 79,121 63,368 1997 48,278 16,340 14,652 79,270 64,248 1998 48,511 16,600 14,969 80,080 65,054 1999 48,003 17,662 15,600 81,265 64,339 2000 47,952 18,094 15,943 81,989 64,859 2001 48,477 19,642 16,678 84,617 64,548 2002 49,676 22,222 17,140 89,038 63,628 2003 50,731 23,297 18,010 92,038 62,281 2004 50,995 20,726 18,746 90,467 63,100
(1) Includes Capital University, Columbus College of Art & Design, Franklin University, Ohio Dominican College, Otterbein College, and Mt. Carmel College of Nursing.
DeVry Institute of Technology, Fall 2004 enrollment was approximately 3,336 students. Also, in Franklin County there are 40 proprietary schools with an estimated enrollment of 8,300 students.
(2) The Columbus City School District is a political subdivision under Ohio law, separate and distinct from the City of Columbus. Sixteen other public school districts lie partially or wholly within Franklin County. Enrollment in these districts, for Franklin County only, is estimated at 112,075. Additionally, the Catholic Diocese of Columbus operates 29 elementary and secondary schools in Franklin County with approximately 12,375 students. The 78 additional nonpublic schools located in Franklin County have an estimated enrollment of 20,776.
Sources: Columbus Public Schools; Catholic Diocese of Columbus; Ohio Department of Education; Ohio Board of Regents; The Ohio State University; Columbus State Community College; Association of Independent Colleges and Universities of Ohio; State Board of Career Colleges and Schools.
240 City of Columbus, Ohio Table 24 City of Columbus and Franklin County, Ohio Land Area December 31, 2004
Jurisdiction Square Miles
Columbus...... 224.2 (1) Less portion outside of Franklin County...... (7.8) (2)
Other incorporated areas in Franklin County excluding Columbus...... 135.1 (2)
Unincorporated Townships within Franklin County...... 192.4 (2)
Total approximate area of Franklin County 543.9
Sources: (1) City of Columbus, Department of Public Service & Transportation - City Map Room (2) Franklin County Engineer
241 City of Columbus, Ohio Table 25
Exempted Real Property in Franklin County 1995—2004
Amount Year (in thousands)
1995 $ 2,790,753
1996 2,237,768
1997 2,272,602
1998 2,295,563
1999 2,282,662
2000 2,733,229
2001 2,881,736
2002 2,809,079
2003 3,231,183
2004 3,448,684
Exempted real property represents assessed value of certain real property owned by governmental entities (e.g., state, county, city, schools, etc.) or owned by religious or charitable organizations.
Source: Franklin County Auditor.
242
City of Columbus, Ohio Table 26 Salaries of Principal Officials December 31, 2004
Annual Salary Title 2004 2005 Mayor $ 125,595 $ 131,602 (1) President of City Council 42,755 43,610 Member of Council 35,541 36,252 City Attorney 121,260 126,110 City Auditor 121,260 126,110 City Clerk 76,984 79,461 (1) City Treasurer 87,773 88,397 (1) Department Heads/Directors: Civil Service Executive Secretary 117,437 117,870 (1) Health Commissioner 146,504 148,175 (1) Recreation and Parks 122,704 124,103 (1) Public Safety 123,950 125,424 (1) Public Service 113,495 119,350 (1) Community Relations 93,626 94,832 (1) Development 115,646 117,021 (1) Equal Business Opportunity 91,425 92,606 (1) Education 77,108 0 (2) Human Resources 104,824 106,059 (1) Technology 120,791 126,265 (1) Utilities 120,838 120,254 (1) Finance 115,646 117,021 (1)
(1) Hourly rate at January, 2005 annualized X 2,080 hours. (2) Position vacant January 2005.
Source: City of Columbus, Ohio, City Auditor.
Table 27 City of Columbus, Ohio Surety Bond Coverage January 1, 2005
Position Coverage Amount
City Treasurer Fidelity Bonds $ 10,000,000 (1) Deputy Treasurer Fidelity Bonds $ 10,000,000 (1) Police through the rank of Sergeant Honesty Blanket Position Bond$ 25,000 (2) All other employees and elected or appointed officials including all officially appointed members of City Boards and/or Commissions Faithful Performance Blanket Bond$ 1,000,000 (3)
(1) Primary bonds of $5,000,000 are provided by The Cincinnati Insurance Company and expire on 12/31/07. Excess bonds of $5,000,000 are provided by Travelers Casualty and Surety Company and expire on 12/31/07. (2) The Honesty Blanket Position Bond is provided by Travelers Casualty and Surety and expires on 12/31/07. (3) The Faithful Performance Blanket Bond is provided by Selective Insurance Company and expires on 12/31/07.
Source: City of Columbus, Ohio, City Auditor.
243 City of Columbus, Ohio Table 28 Comparison of Building Permits Issued 1995-2004
New Construction Alterations & Additions Total
Permits Valuation Permits Valuation Permits Valuation Year issued (in thousands) issued (in thousands) issued (in thousands)
1995 2,778$ 473,647 6,092$ 275,963 8,870$ 749,610 1996 3,473 532,599 5,497 330,900 8,970 863,499 1997 3,470 840,187 6,515 583,530 9,985 1,423,717 1998 4,324 1,189,922 6,466 570,222 10,790 1,760,144 1999 4,188 866,932 5,287 692,390 9,475 1,559,322 2000 3,880 1,287,368 5,058 723,754 8,938 2,011,122 2001 4,125 1,194,028 3,682 589,247 7,807 1,783,275 2002 4,179 831,872 3,200 421,685 7,379 1,253,557 2003 3,885 673,876 3,391 297,096 7,276 970,972 2004 4,440 497,996 3,858 337,546 8,298 835,542
Source: City of Columbus, Ohio, Department of Development, Building and Development Services
244 City of Columbus, Ohio Table 29 Average Cost of Housing Construction 1995—2004
Single-family average % Change from % Change from Multi-family % Change from % Change from Year structure cost previous year 1994 average unit cost previous year 1994
1995$ 92,159 11.9 % 11.9 %$ 36,288 (4.7) % (4.7) %
1996 90,597 (1.7) 10.0 36,173 (0.3) (5.0)
1997 92,327 1.9 12.1 62,806 73.6 64.9
1998 89,561 (3.0) 8.7 46,155 (26.5) 21.2
1999 102,377 14.3 24.3 36,129 (21.7) (5.1)
2000 129,906 26.9 57.7 42,517 17.7 11.7
2001 130,403 0.4 58.3 45,800 7.7 20.3
2002 133,643 2.5 62.2 43,526 (5.0) 14.3
2003 137,895 3.2 67.4 41,844 (3.9) 9.9
2004 141,286 2.5 71.5 59,897 43.1 57.3
Source: City of Columbus, Ohio, Department of Development, Building Services
245 City of Columbus, Ohio Table 30 Operating Indicators and Capital Asset Statistics Last Ten Fiscal Years
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Public Service Highways and Streets Streets (miles) 1,823 1,844 1,871 1,889 1,921 1,944 1,963 1,979 2,001 2,023 Streetlights 42,724 39,519 40,283 42,093 43,633 48,515 44,153 45,514 46,322 47,876 Traffic Signals 372 362 363 291 294 300 325 350 422 350 Computerized Signals 464 484 502 591 599 603 617 600 531 600
City Fleet (public service) Refuse 253 294 309 277 268 271 282 277 254 241 Other 1,493 1,578 1,675 1,609 1,689 1,701 1,664 1,637 1,638 1,525
Public Safety Police Headquarters 1111111111 Heliport 1111111111 Training Academy 1111111112 Substations 13 18 18 18 18 14 14 14 13 14
Fire Headquarters 1111111111 Training Academy 1111111111
246 Fire Stations 31 31 31 31 31 31 31 31 32 32
City Fleet (public safety) Fire 284 304 316 344 354 382 384 394 383 407 Police 968 943 933 1,041 1,094 1,161 1,209 1,188 1,180 1,127
Recreation and parks Parks Acreage12,885 13,060 13,215 13,309 14,032 14,154 14,613 14,544 14,617 14,854 Parks 254 260 261 271 293 303 323 333 340 369 Playgrounds 64 65 64 69 120 126 126 128 128 131 Swimming Pools 11 11 11 11 11 12 12 11 11 11 Tennis Courts 147 147 147 147 147 141 141 141 141 136 Community Centers 28 28 28 28 28 28 28 28 27 27 Senior Centers 8877777766 Athletic Complexes 5555555555 Specialized Facilities 6666666777 Shelter Houses 7788888888 Golf Courses 7777777777 Reservoirs 3333333333
Water Water Mains (miles) 2,269 2,303 2,329 2,362 2,392 2,405 2,459 2,479 2,495 2,521 Maximum Daily Capacity 169 190 180 193 209 184 203 216 189 191 (millions of gallons)
Sewer Sanitary Sewers (miles) 2,017 2,059 2,103 2,158 2,212 2,249 2,288 2,326 2,363 2,782 Storm Sewers (miles) 1,217 1,280 1,341 1,419 1,503 1,560 1,632 1,728 1,789 2,538 Maximum Daily Capacity N/A N/A N/A N/A N/A N/A 290 310 310 310 (millions of gallons) City of Columbus, Ohio Table 31 Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
In the spirit of full disclosure and in compliance with the above Rule, the City is pleased to disclose the following regarding its outstanding obligations.
Description of Material Events: 1. There were no delinquencies of principal and/or interest payments. 2. There were no non-payment related defaults. 3. There were no unscheduled draws on debt service reserves reflecting financial difficulties. 4. There were no unscheduled draws on credit enhancements reflecting financial difficulties. 5. There were no substitutions of credit or liquidity providers. No current provider failed to perform. 6. There have been no adverse tax opinions affecting the tax-exempt status of any of the City’s outstanding obligations. 7. There have been no modifications to rights of the holders of the City’s obligations. 8. On October 28, 2004, the City issued $20,000,000 of tax increment financing (TIF) supported governmental type debt for the City’s Polaris project. This new TIF debt raised additional capital for the project, but also refunded $2.1 million of then outstanding TIF variable rate debt for the same project. No economic gain or loss resulted from the transaction. The transaction was accomplished as follows: (in thousands) Sources of funds: Par amount of new bonds $ 20,000 Premium received 363 Total sources $ 20,363
Uses of funds: Redemption price and carrying value of old bonds $ 2,100 Underwriters’ discount and other costs of issuance 571 Provision for debt service reserve fund 1,727 Additional capital proceeds 15,965 Total uses $ 20,363
9. On November 23, 2004, the City issued $36,430,000 of TIF supported governmental type debt for the City’s Easton project. This new TIF debt raised additional capital for the project, capital for the City’s downtown area remote from the TIF district and refunded/defeased existing TIF bonds related to the project. The refunding/defeasance, not transacted for the economic gain, eliminated certain restrictive covenants contained in the earlier bond indenture. The transaction was accomplished as follows. (in thousands) Sources of funds: Par amount of new bonds $ 36,430 Premium received 174 Cash contribution from the City’s TIF fund 3,044 Total sources $ 39,648
Uses of funds: Redemption price and carrying value of old bonds $ 29,520 Additional funds to escrow agent 2,950 Total funds to escrow agent 32,470 Underwriters’ discount and other costs of issuance 1,690 Provision for debt service reserve fund 3,033 Additional capital proceeds 2,455 Total uses $ 39,648 247
City of Columbus, Ohio
Table 31 (Continued) Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
Deferred amounts on refunding/defeasance portion of the Easton project debt was calculated as follows:
(in thousands) Reacquisition price: Par proceeds from sale of new bonds $ 36,430 Premium received 174 Cash contribution from the City’s TIF fund 3,044 Less bond issuance costs (1,690) Less provisions for debt service fund (3,033) Less additional capital proceeds (2,455) Reacquisition price or amount paid to escrow agent 32,470 Net carrying amount of the old bonds 29,520 Deferred amount on refunding $ 2,950 Amortized in 2004 Unamortized amount
Nominal increase in debt service, economic loss and present value loss on the refunding/defeasance portion of the Easton project debt was calculated as follows:
(in thousands) Refunded (old) bonds: Principal $ 29,520 Interest 20,088 Total 49,608
Refunding (new) bonds: Principal 36,430 Interest 23,790 Total 60,220 Increase in debt service $ 10,612
Economic gain (loss) Present value of loss from cash flow $ (4,458) Cash contribution from TIF fund (3,044) Proceeds retained for debt service reserve fund 3,033 Additional capital proceeds 2,455 Net present value loss $ (2,014)
Present value rate: True interest cost of new bonds 4.48%
Interest rate borne by old bonds 4.25-5.30%
10. The City did not release, substitute, or sell any property (the City has not secured any of its obligations with any of its property) securing repayment of obligations.
248
City of Columbus, Ohio
Table 31 (Continued) Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
11. Ratings of the City’s bonds and any changes occurring since the City’s 2003 CAFR are as follows.
Moody’s Investors Service Standard and Poor’s Bond Description Prior Rating Current Rating Prior Rating Current Rating
General Obligation Fixed Rate Bonds Aaa Aaa AAA AAA
General Obligation Variable Rate Demand Bonds Aaa/VMIG1 Aaa/VMIG1 AAA/A1+ AAA/A1+
1999 Water System Revenue Refunding Bonds Aa2 Aa2 AA AA
1994 Sewer System Adjustable Rate Refunding Revenue Bonds Aa2/VMIG1 Aa2/VMIG1 AA/A1+ AA/A1+
2002 Sewer System Revenue Refunding Bonds Aa2 Aa2 AA AA
12. The City will continue to provide all the necessary information, contained below under “Continuing Disclosure Undertaking”, on an annual basis as is required by the Rule.
249
City of Columbus, Ohio Table 31 (Continued) Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
Continuing Disclosure Undertaking:
The following provides the Annual Information and/or indicates where in this report the Annual Information may be obtained.
(1.) Debt Summary – Outstanding Bonds and Notes – see Note G contained in this report.
(2.) Debt Summary – Overlapping Debt – see Table 14 contained in this report.
(3.) Debt Summary – Historical Debt Information – see section entitled “Debt Administration – Bond and Note History” contained in the Transmittal Letter and Table 14 contained in this report.
(4.) Debt Summary – Conduit Type Debt – see Note G contained in this report.
(5.) Summary of Financial Information – Summary of Certain Financial Statements for General Fund and Debt Service Funds – see respective financial statements contained in this report.
(6.) Water System – Largest Customers – see table below.
Water Enterprise – Ten Largest Customers (Based upon 2004 Sales)
Total Charges % of Total Customer (in thousands) Water Charges Anheuser Busch Inc. $ 1,757 1.86% OSU Physical Facilities 1,010 1.07 Franklin County Sanitation Engineer 1,009 1.07 Columbus Metropolitan Housing Authority 381 0.40 Lifestyle Communities 375 0.40 Abbott Laboratories 352 0.37 7 Up Columbus 253 0.27 Village of Obetz 225 0.24 Masterfoods Inc. (Kal Kan) 224 0.24 Ohio Health Corp. 219 0.23 Total $ 5,805 6.15%
Source: Department of Public Utilities, Division of Water
(7.) Water System – Water Enterprise Fund – see respective financial statements contained in this report.
(8.) Water System – Outstanding Debt – see respective financial statements, Note G and Table 15 contained in this report.
250
City of Columbus, Ohio
Table 31 (continued) Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
(9.) Sanitary Sewer System – Largest Customers – see table below.
Sanitary Sewer Enterprise – Ten Largest Customers (Based upon 2004 Sales)
Total Charges % of Total Customer (in thousands) Sewer Charges Anheuser Busch Inc. $ 5,609 4.87% Ohio State University 2,077 1.80 Abbott Laboratories 1,371 1.19 Coca Cola USA 1,074 0.93 7 Up Columbus 726 0.63 Masterfoods Inc. (Kal Kan) 697 0.61 Columbus Metropolitan Housing Authority 633 0.55 Worthington Better Living 622 0.54 Jefferson Water Sewer District 562 0.49 T. Marzetti 480 0.42 Total $ 13,851 12.03%
Source: Department of Public Utilities, Division of Sewerage and Drainage
(10.) Sanitary Sewer System – Sanitary Sewer Enterprise Fund – see respective financial statements contained in this report.
(11.) Storm Sewer System – Largest Customers – see table below.
Storm Sewer Enterprise – Ten Largest Customers (Based upon 2004 Sales)
Total Charges % of Total Customer (in thousands) Sewer Charges Ohio State University Physical Facilities $ 350 1.51% Columbus International Air Center 104 0.45 Ohio State University (West Case) 79 0.34 Columbus Airport Authority 76 0.33 J.C. Penney Co. Inc. 76 0.33 Cushman & Wakefield 75 0.32 Ohio Expo Center 67 0.29 Consolidated Stores 60 0.26 The Limited 54 0.23 PCCP IRG Columbus LLC 53 0.23 Total $ 994 4.29%
Source: Department of Public Utilities, Division of Sewerage and Drainage
251
City of Columbus, Ohio
Table 31 (continued) Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
(12.) Electricity System – Largest Customers – see table below.
Electricity Enterprise – Ten Largest Customers (Based upon 2004 Sales)
Total Charges % of Total (in thousands) Electric Charges City of Columbus – Division of Sewerage & Drains $ 7,029 11.96% City of Columbus – Division of Water 4,204 7.16 Franklin County 1,590 2.71 State Hilltop Properties 1,266 2.16 Martin Marietta / Shelly Materials 1,226 2.09 Columbus State Community College 1,219 2.07 Columbus Public Schools 1,191 2.03 Ohio Building Authority 947 1.61 City of Columbus – Division of Facilities Management 900 1.53 Franklin International 832 1.42 Total $ 20,404 34.74%
Source: Department of Public Utilities, Division of Electricity
(13.) Electricity System – Electricity Enterprise Fund – see respective financial statements contained in this report.
(14.) Electricity System – Rate Determination – see section entitled “Electricity” contained in the Transmittal Letter of this report.
(15.) Municipal Airport Authority – see respective financial statements contained in this report.
(16.) Certain Municipal Income Tax Matters – Historical City Income Tax Revenues – see Table 5 contained in this report.
(17.) Certain Property Tax Matters – Assessed Value of Taxable Property – see Table 7 contained in this report.
(18.) Certain Property Tax Matters – Tax Rates – see Table 8 contained in this report.
(19.) Certain Property Tax Matters – Principal Taxpayers – see Table 9 contained in this report.
(20.) Certain Property Tax Matters – Ad Valorem Taxes Levied and Collected – see Table 6 contained in this report.
252
City of Columbus, Ohio Table 31 (continued) Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
(20.) Tax Increment Revenues – Easton – The following is an update to the information provided in the Official Statement, dated November 9, 2004 and relating to the original issuance of $36,430,000 City of Columbus, Ohio Tax Increment Financing Bonds, Series 2004A (Easton Project), under the caption “TAX INCREMENT REVENUES.” (See Page 11 of the Official Statement.): ______Based upon the Franklin County Auditor’s billing data for collection year 2004, the top ten obligors with respect to Tax Increment Payments were responsible for $1,869,076 of the total $2,084,809 in TIF Revenues to the City for that collection year. The top ten obligors and their respective percentages of the Total Tax Increment Payments for the collection year 2004 are as follows:
% of Total TIF Rank Name of Obligor Description Payments 1 Easton Towne Center LLC Mixed use retail/office 40.12% 2 Easton Market LLC Retail stores 12.59 3 Distribution Land Corp. Warehouse/distribution 9.44 4 MORSO Holding Co. Land holding company 6.60 5 Easton Communities LLC Multifamily 4.81 6 Richs Department Stores Inc. Retail store 4.74 7 Nordstrom Inc. Retail store 3.54 8 Lowes Home Centers Inc. Retail store 2.58 9 Dayton Hudson Corp. Retail store 2.47 10 Robert Lindemann Tr. Land holding company 2.27
(21.) Tax Increment Revenues – Polaris – The following is an update to the information provided in the Official Statement, dated October 19, 2004 and relating to the original issuance of $20,000,000 City of Columbus, Ohio Tax Increment Financing Bonds, Series 2004A (Polaris Project), under the caption “TAX INCREMENT REVENUES.” (See Page 15 of the Official Statement.): ______Based upon billing data for collection year 2004, the top ten obligors with respect to TIF Payments, and their respective percentages of the total TIF Payments into the TIF Account for that collection year ($1,542,663), were as follows:
% of Total TIF Rank Name of Obligor Total City Share Payments 1 PFP Columbus LLC $ 770,254.93 $ 255,637.18 16.57% 2 Polaris Center LLC 422,553.33 140,239.73 9.09 3 N.P. Limited Partnership 342,005.86 113,507.11 7.36 4 The May Department Stores Co. 324,850.18 107,813.38 6.99 5 The Offices at Polaris LTD. 246,237.09 81,722.76 5.30 6 Bank One Management Corp. 219,072.12 72,707.07 4.71 7 Richs Department Stores Inc. 188,438.33 62,540.13 4.05 8 Sears Roebuck and Co. 186,387.88 61,859.61 4.01 9 Polaris Ventures IV LTD. 177,630.24 58,953.07 3.82 10 JC Penney Properties Inc. 144,601.70 47,991.35 3.11
253
City of Columbus, Ohio Table 31 (continued) Compliance Information Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D)
(22.) Debt Summary – Projected Additional Debt
To be eligible for capital improvements funding (i.e., from issuance of debt), an asset must have a useful life of at least five years and be considered non-operational. Some examples of capital improvements projects include the purchase of major equipment items, street lighting, street improvements, land acquisition for recreational needs, building construction and facility rehabilitation. The City’s current capital improvements program (CIP), for the period 2005 through 2010, provides for approximately $1.9 billion in funding for various capital improvements. A copy of the current CIP may be obtained by contacting the Department of Finance, City Hall, 90 West Broad Street, Columbus, Ohio 43215.
This Comprehensive Annual Financial Report of the City of Columbus, Ohio will be distributed to approximately 500 recipients including the Municipal Securities Rulemaking Board, all nationally recognized municipal securities information repositories (NRMSIRS), and to the Ohio Municipal Advisory Council. This report is also available on the City’s website. The Internet address is: http://www.cityofcolumbus.org.
254
SINGLE AUDIT SECTION
Deloitte & Touche LLP 155 East Broad Street 18th Floor Columbus, OH 43215-3611 USA Tel: 614-221-1000 Fax: 614-229-4647 www.deloitte.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Hugh J. Dorrian City Auditor City of Columbus, Ohio and the Honorable Betty Montgomery Auditor of State of Ohio
We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund and the aggregate remaining fund information of the City of Columbus, Ohio (the “City”) as of and for the year ended December 31, 2004, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 19, 2005, which included an emphasis of matter paragraph related to the restatement of beginning net assets of the business-type activities and the Water and Sanitary Sewer funds and a reference to other auditors who audited the Columbus Urban Growth Corporation, a discretely presented component unit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those
Member of 255 Deloitte Touche Tohmatsu provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However, we noted certain immaterial instances of noncompliance that we have reported to the management of the City in a separate letter dated April 19, 2005.
This report is intended solely for the information and use of the City’s management, the Auditor of the State of Ohio, federal, state and pass-through awarding agencies, and is not intended to be and should not be used by anyone other than these specified parties.
April 19, 2005
256 Deloitte & Touche LLP 155 East Broad Street 18th Floor Columbus, OH 43215-3611 USA Tel: 614-221-1000 Fax: 614-229-4647 www.deloitte.com
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND ON THE SCHEDULE OF FEDERAL, STATE AND COUNTY AWARDS
The Honorable Hugh J. Dorrian City Auditor City of Columbus, Ohio and the Honorable Betty Montgomery Auditor of State of Ohio
Compliance
We have audited the compliance of the City of Columbus, Ohio (the “City”), with the types of compliance requirements described in the U.S. Office of Management and Budget (“OMB”) Circular A- 133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2004. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City’s management. Our responsibility is to express an opinion on the City’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2004. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as items 04-01, 04-02 and 04-03.
Member of 257 Deloitte Touche Tohmatsu Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City’s internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weakness. A material weakness is a reportable condition in which the design or operation of one or more of the internal control requirements of laws regulations, contracts, and grants, caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance that appear to be material weaknesses.
Schedule of Expenditures of Federal Awards
We have audited the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Columbus, as of and for the year ended December 31, 2004, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 19, 2005. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for the purpose of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. This schedule is the responsibility of the management of the City. Such information has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects when considered in relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of the City’s management, the Auditor of State of Ohio, federal, state and pass-through awarding agencies and is not intended to be and should not be used by anyone other than these specified parties.
April 19, 2005
258 Exhibit F-1
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures
Federal Grants Department of Agriculture 510216 286 Wetlands Reserve Program 10.072 - $ 22,241 $ 22,241 - 863 513016 286 2003 Summer Food Service Program for Children 10.559 - 1,204,967 - - 19,428 514016 286 2004 Summer Food Service Program for Children 10.559 - 1,258,485 785,539 - 785,539 Total for CFDA 10.559 785,539 - 804,967 518309 286 Senior Farmers Market Nutrition Program 10.576 - 100,000 100,000 - 96,360 Total Department of Agriculture $ 907,780 - 902,190
From Ohio Environmental Protection Agency: 502037 251 Columbus Lead - Safe Yard 66.707 J525 150,000 - - 36,125 Total Environmental Protection Agency $- - 36,125
Department of Health and Human Services 518318 286 Title IIID - Disease Preventive and Health 93.043 84,214 90,089 - 81,658 518306 286 Title IIID - In-House Services 93.044 88-06 42,000 - - 335 518307 286 Title IIIE - Caregiver Support 93.052 88-06 721,339 712,519 100 621,421 518317 286 Title IIIE - Caregiver Support 93.052 88-06 4,253 4,253 - 4,234 Total for CFDA 93.052 716,772 100 625,655 518310 286 Title IV - Senior Medicare 93.048 145,128 151,543 - 150,417 514029 286 Temporary Assistance for Needy Families 93.568 394,707 354,008 - 285,238 518020 286 Low-Income Home Energy Assistance 93.568 HEAP-06 27,753 17,753 - 27,253 259 Total for CFDA 93.568 371,761 - 312,491 448220 220 Social Services Block Grant 93.667 G-9501-04-ECUR 2,947,368 115,623 - 107,008 502017 251 2002 Healthy Start Initiative 93.926 5H47MC00028-03 500,000 - - 7,000 503017 251 2003 Healthy Start Initiative 93.926 5H49MC00028-04 500,000 351,751 - 348,884 Total for CFDA 93.926 351,751 - 355,884 505051 251 2004 Metropolitan Medical Response 93.283 463,000 - - 7,049 504051 251 2003 Metropolitan Medical Response 93.283 J321 280,000 200,000 - 119,383 508317 251 Metro Medical Strike Team 93.283 - 600,000 - - 8,733 Total for CFDA 93.283 200,000 - 135,165 Total Department of Health and Human Services 1,997,539 100 1,768,613
From the Ohio Department of Aging: 518301 286 Programs for the Aging-Title III, Part B-Senior Support Services 93.044 88-06 1,860,425 1,781,938 2,179 1,859,230 518303 286 Programs for the Aging-Title III, Part C-Nutrition Services 93.045 - 2,607,794 2,467,153 4,535 2,653,066 518324 286 Programs for the Aging-Title III, Part A-Nutrition Services 93.045 - 347,348 357,038 247,336 552,124 Total for CFDA 93.044 and CFDA 93.045 4,606,129 254,050 5,064,420 518139 286 (4) Medical Assistance Program (PASSPORT) 93.778 - 25,863,656 28,904,521 506,671 31,015,110 Total Ohio Department of Aging 33,510,650 760,721 36,079,530 Exhibit F-1 (continued)
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures From the Ohio Department of Health: 502016 251 2002 Women, Infants, and Children Program 10.557 K033 3,324,301 - - 874 503016 251 2003 Women, Infants, and Children Program 10.557 K630 3,697,440 2,820,928 6,292 2,959,250 504016 251 2004 Women, Infants, and Children Program 10.557 K630 3,703,878 777,813 69 775,196 Total for CFDA 10.557 3,598,741 6,361 3,735,320 503004 251 TB Prevention Control 93.118 K091 184,731 - - 6,331 504004 251 TB Prevention Control 93.118 J502 163,377 163,377 - 153,508 Total for CFDA 93.118 163,377 - 159,839 503022 251 2003 Childhood Lead Poisoning Prevention Program 93.197 K370 94,000 47,000 - 45,516 503006 251 2003 Immunization Action Plan 93.268 K095 362,963 55,314 248 26,422 504006 251 Childhood Immunization Grants 93.268 J523 338,165 331,053 - 328,912 Total for CFDA 93.268 386,367 248 355,334 502045 251 Public Health Infrastructure 93.283 J321 668,186 - - 38,180 505052 251 2005 Public Health Infrastructure 93.283 817,486 408,744 - 205,666 504052 251 Public Health Infrastructure 93.283 966,097 596,924 118 792,726 Total for CFDA 93.283 1,005,668 118 1,036,572 504059 251 HIV Care Formula Grants 2004 93.917 142-AI 53,000 40,635 - 37,708 503009 251 HIV Care Formula Grants 2003 93.917 142-AI 31,000 13,116 - 18,091 503014 251 2003 State AIDS Care 93.917 K314 51,713 13,559 - 15,314 Total for CFDA 93.917 67,310 - 71,113 Cooperative Agreements-State Based Comprehensive Breast/Cervical 503023 251 Cancer Early Detection Programs 2003 93.919 K342 191,885 89,908 - 97,671 Cooperative Agreements-State Based Comprehensive Breast/Cervical
260 504023 251 Cancer Early Detection Programs 2004 93.919 K342 276,000 119,000 - 94,096 Total for CFDA 93.919 208,908 - 191,767 503005 251 HIV Prevention Activities-Health Department Based 93.940 K104 883,568 165,543 - 174,541 504005 251 HIV Prevention Activities-Health Department Based 93.940 J524 888,568 811,381 - 691,003 Total for CFDA 93.940 976,924 - 865,544 503013 251 Health Delivery Services to Persons with AIDS 2003 93.959 142 120,702 94,801 - 80,000 503003 251 2003 STD Control Program 93.977 K103 400,773 99,412 - 98,009 504003 251 2004 STD Control Program 93.977 J568 542,713 542,713 - 415,850 Total for CFDA 93.977 642,125 - 513,859 502049 251 Preventive Health & Health Service 93.991 - 49,674 - - 7,489 502048 251 2003 Cardiovascular Health 93.991 156,500 21,131 - 13,157 504048 251 2004 Cardiovascular Health 93.991 155,000 155,000 - 142,037 Total for CFDA 93.991 176,131 - 162,683 503018 251 Maternal & Child Health Svs Block Grant to the States 93.994 J940 977,878 368,031 4,997 906,907 504018 251 Maternal & Child Health Svs Block Grant to the States 93.994 J940 906,508 453,254 302,346 233,696 503020 251 2003 Ohio Infant Mortality Reduction 93.994 J940 150,000 112,500 - 124,391 505020 251 2004 Ohio Infant Mortality Reduction 93.994 K630 112,500 28,125 - 33,848 Total for CFDA 93.994 961,910 307,343 1,298,842 Total Ohio Department of Health 8,329,262 314,070 8,516,389
From the Franklin County A.D.A.M.H. Board: 501030 251 2001 Women's Alcohol Recovery 93.959 - 225,195 - - 2,599 502027 251 2002 HIV Early Intervention Services 93.959 - 330,321 101,477 - 8,854 502028 251 2002 Lifestyle Risk Reduction/COA 93.959 - 131,153 6,489 11,686 990 502030 251 2002 Women's Alcohol Recovery 93.959 - 225,195 5,000 203 55,105 503027 251 2003 HIV Early Intervention Services 93.959 - 294,462 162,830 - 231,394 503028 251 2003 Lifestyle Risk Reduction/COA 93.959 - 183,529 86,888 30,300 75,345 503030 251 2003 Women's Alcohol Recovery 93.959 - 101,742 295,353 50,461 227,782 Total Franklin County A.D.A.M.H Board 658,037 92,650 602,069 Total Department of Health and Human Services $ 44,495,488 1,167,541 46,966,601 Exhibit F-1 (continued)
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures Total Department of Housing and Urban Development 458004 201 Housing Development Grant Program 14.174 OH010HG601 1,694,980 - 86,211 1,057,368 458005 202 Hope Program 14.185 - - - 12,500 9,500 518002 286 Congregate Housing Services Program 14.191 - 354,000 242,490 105,438 346,210 sbf 001 248 Community Development Block Grant-Non-loan program 14.218 B-04-MC-390009 10,600,244 1,655,739 13,134,256 sbf 002 248 Community Development Block Grant-Loan program 14.218 - - 2,588,619 158,091 Total for CFDA 14.218 10,600,244 4,244,358 13,292,347 sbf 016 243 Urban Development Action Grant 14.221 B-81-AA-39-0096 6,000,000 - 214,936 - sbf 018 243 Urban Development Action Grant 14.221 - 1,000,000 - 65,521 221,425 Total for CFDA 14.221 - 280,457 221,425 458084 220 Emergency Shelter Grants Program 14.231 S-04-MC-390009 293,917 342,531 - 342,531 458001 201 HOME Investment Partnerships Program-Non-loan program 14.239 M-03-MC-390210 27,903,175 - 94,082 6,735,909 458001 201 HOME Investment Partnerships Program-Loan program 14.239 M-04-MC-390210 27,903,175 6,864,094 - 40,890,748 Total for CFDA 14.239 6,864,094 94,082 47,626,657 508274 220 Housing for People with AIDS (HOPWA) 14.241 O-HH-02-F003 584,000 398,322 - 547,880 449006 220 Empowerment Zones Program 14.244 EZ-03-OH-0010 24,953,967 5,570,252 - 5,192,597 449001 220 Economic Development Initiative 14.246 9,000,000 - 95,568 - 449003 204 Central City Loan 14.246 3,000,000 - 20,968 131,683 Total for CFDA 14.246 - 116,536 131,683 442004 220 Lead-Based paint Hazard Control in Priority Housing 14.900 30,000 - - 3,768 443004 220 Lead-Based paint Hazard Control in Priority Housing 14.900 OHLAG0055-95 2,157,343 928,086 - 1,034,060 Total for CFDA 14.900 928,086 - 1,037,828 Total Department of Housing and Urban Development $ 24,946,019 4,939,582 69,806,026
261 Department of Interior From the Ohio Historical Society: 512021 286 Cultural Arts Center 15.914 - - 5,375 - - 512022 286 Beatty Park & Recreation Center 15.919 - 1,500,000 674,295 - 670,084 Total Department of Interior $ 679,670 - 670,084
Department of Justice 240002 220 Juvenile Justice and Delinquency Prevention 16.540 99-JJ-OP2-0209 59,786 30,609 - - 243008 220 Project Smart - Student Mediation 16.540 41,846 - - 32,565 Total for CFDA 16.540 30,609 - 32,565 334021 220 Juvenile Accountability Incentive 16.523 03-JB-007-F130 55,000 5,135 6,111 16,674 333005 220 Operation Nite Light (02 JAIBG) 16.523 02-JB-007-F130 95,061 51,090 - 17,862 332010 220 S.T.O.P. Teenage Opportunity to Purchase 16.523 00-JB-013-A049 16,586 10,096 - 10,096 Total for CFDA 16.523 66,321 6,111 44,632 338007 222 Local Law Enforcement Block Grant (LLEBG) 16.592 02-LB-BX-0949 701,568 75,000 9,428 358,026 338008 222 Local Law Enforcement Block Grant (LLEBG) 16.592 03-LB-BX-1654 538,821 - 67,885 110,621 338009 222 Local Law Enforcement Block Grant (LLEBG) 16.592 04-LB-BX-0566 256,958 256,958 1,286 - Total for CFDA 16.592 331,958 78,599 468,647 324001 220 COPS Interoperable Communications Tech 16.710 - 2,506,913 1,714,918 836,000 2,360,056 331003 220 Bulletproof Vest Partnership 16.607 - 73,207 - - 334 332003 220 Bulletproof Vest Partnership 16.607 - 68,411 68,411 - 35,921 333003 220 Bulletproof Vest Partnership 16.607 - 16,561 16,561 - 8,683 334003 220 Bulletproof Vest Partnership 16.607 - 13,283 13,283 - - Total for CFDA 16.607 98,255 - 44,938 Total Department of Justice $ 2,242,061 920,710 2,950,838 Exhibit F-1 (continued)
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures From the Office of Criminal Justice Services 334020 220 2004 Project Safe Neighborhood 16.579 03-PS-PSN-319 64,000 - - 58,943 333015 220 Central Ohio Regional Drug Task Force 16.579 02-DG-A01-7206 100,000 24,815 - 1,984 From the Bureau of Justice Assistance 240001 220 Byrne Formula Grant 16.579 DG-E01-7721 378,540 9,679 4,559 12,906 244009 220 Byrne Formula Grant 16.579 44,479 24,064 14,826 44,554 Total for CFDA 16.579 58,558 19,385 118,387 334025 220 Edward Byrne Memorial - State and Local Assistance 16.580 03-DG-B-C116 2,737 2,733 911 3,644 252004 220 2002 Planning In Community Prosecution 16.609 - 75,000 22,476 - 48,376 333018 220 311 Homeland Security & Crisis Management 16.710 2003-CKWK-0456 300,000 - - 107,448 241004 220 Violence Against Women Formula Grants 16.588 96-WF-VA2-8758 28,429 63,143 19,485 69,226 241005 220 Violence Against Women Formula Grants 16.588 96-WF-VA5-8757 56,470 7,484 3,814 8,724 248270 220 Violence Against Women Formula Grants 16.588 96-WF-VA2-8758 398,534 130,729 35,399 141,616 248271 220 Violence Against Women Formula Grants 16.588 96-WF-VA5-8757 267,679 69,863 18,386 73,551 248295 220 Violence Against Women Formula Grants 16.588 99-VA-DSC-E317 439,333 94,446 68,688 140,272 333007 220 Violence Against Women Formula Grants 16.588 02-WF-VA3-8752 19,050 7,089 - 3,952 334007 220 Violence Against Women Formula Grants 16.588 03-WF-VA3-8752 11,300 2,973 - 2,973 334022 220 Violence Against Women Formula Grants 16.588 2002-WF-VA3-V600 64,533 64,533 - 64,533 Total for CFDA 16.588 440,260 145,772 504,847 Total Alliance for Cooperative Justice $ 524,027 166,068 782,702
From the Ohio Attorney General's Office: 334017 220 Justice Research, Development, and Evaluation Project Grants 16.560 2003-PC-NFS-7805A 9,659 - - 6,222
262 333017 220 Justice Research, Development, and Evaluation Project Grants 16.560 2003-PC-NFS-7805 8,330 8,330 - 5,900 Total for CFDA 16.560 8,330 - 12,122 332012 220 Crime Laboratory Improvements 16.564 235,000 62,800 - 98,018 334023 220 Crime Laboratory Improvements 16.564 221,500 117,000 - - Total for CFDA 16.564 179,800 - 98,018 240003 220 Telecomm Harassment Grant 16.575 DG-E02-B515 136,912 81,310 29,496 117,985 253003 220 2003 Probation Svcs - Victim Advocates 16.575 03VADSCE478 42,550 28,366 - 70,538 254003 220 2004 Probation Svcs - Victim Advocates 16.575 03VADSCE478 42,550 10,638 60,000 22,588 Total for CFDA 16.575 120,314 89,496 211,111 Total Ohio Attorney General $ 308,444 89,496 321,251 Total Department of Justice 3,074,532 1,176,274 4,054,791
Department of Transportation From Ohio Public Safety 333019 220 2003 CPD-Ohio Safe Commute 20.600 - 66,169 54,166 - 22,723 334013 220 2004 Selective Traffic Enforcement 20.600 GR-1 4043.0 68,244 21,223 - 68,119 334019 220 2004 CPD-Ohio Safe Commute 20.600 - 80,746 73,174 - 73,174 334419 220 2004 CPD-Ohio Safe Commute 20.600 - 126,328 - - 100,348 334519 220 2004 CPD-Ohio Safe Commute 20.600 - 48,735 - - 48,051 335013 220 2005 Selective Traffic Enforcement 20.600 5117.0 67,139 - - 12,501 343003 220 2003 EMS Grant 20.600 - 35,425 - - 250 344002 220 2004 EMS Grant 20.600 - 13,550 7,275 - 10,108 344006 220 EMS Airway Equipment Grant 20.600 - 2,125 2,125 - 2,125 345002 220 2005 EMS Grant 20.600 - 2,000 2,000 - - 502024 251 2002 Safe Communities 20.600 3025.1 101,000 - - 2,996 502025 251 2002 Occupant Protection Program 20.600 3011.1 68,667 - - 1,841 502026 251 2002 Child Passenger Van Grant 20.600 3009.2 68,431 24,073 - 1,850 503024 251 2003 Safe Communities 20.600 4166.2 117,500 90,404 - 76,288 503025 251 2003 Occupant Protection Program 20.600 4082.0 68,667 65,668 - 55,890 503026 251 2003 Child Passenger Van Grant 20.600 4083.0 34,215 30,939 - 18,228 504024 251 2004 Safe Communities 20.600 5072.0 127,000 - - 18,699 504025 251 2004 Occupant Protection Program 20.600 5129.0 68,667 - - 9,438 504026 251 2004 Child Passenger Van Grant 20.600 5118.0 17,108 - - 9,019 504057 251 Walk Safely With Law Enforcement 20.600 75,000 50,782 - 50,782 Total Ohio Public Safety 421,829 - 582,430 Exhibit F-1 (continued)
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures From the Ohio Department of Transportation: 540002 220 Freeway Management Systems 20.205 10970 315,000 36,214 - - 542004 220 Freeway Management Systems 20.205 10970-A 315,000 88,692 - 173,623 548077 220 Paving the Way 2003 20.205 PF-FRA-189 630,838 199,945 - 242,749 595077 220 Paving the Way 2004 20.205 PF-FRA-189 550,000 - 150,000 46,061 561001 765 Highway Planning & Construction - Hard Road - Phase B 20.205 FRA-CR61-2.33 13,459,945 8,846,997 1,052,068 6,875,734 561101 765 Highway Planning & Construction - Hard Road - Phase C 20.205 FRA-CR61-4.34 7,101,000 - - 1,764,662 561119 765 Highway Planning & Construction - I670/I71/I270 20.205 FRA-670-71-270 89,301 - - 46,474 530152 765 Highway Planning & Construction - I71/Morse Road Interchange 20.205 FRA-IR71-24.41 660,000 615,519 384,124 200,624 593007 765 Highway Planning & Construction - Norton Road 20.205 FRA-CR0003-9.82 1,320,000 - 262,000 163,631 Total Ohio Department of Transportation 9,787,367 1,848,192 9,513,558 Total Department of Transportation $ 10,209,196 1,848,192 10,095,988
Department of Homeland Security 344004 220 FEMA - Assistance to Firefighters 97.044 - - 842,415 - Total Federal Emergency Management Agency - 842,415 -
Total Federal Assistance - Primary Government $ 84,312,685 9,974,004 132,531,805
Other Federal Agencies 678001 557 Urban Consortium Energy Task Force 81.049 - - - 25,930 Other Federal Assistance - Loans US EPA/OWDA Water Pollution Control Loan 66.458 - - - 26,003,425 26,962,971 263
Total Federal Assistance - Reporting Entity $ 84,312,685 35,977,429 159,520,706 Exhibit F-1 (continued)
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures
State Grants Department of Aging 518006 286 RSS/Assisted Living GRF-490-412 47,590 48,114 - 50,620 518025 286 Senior Volunteer Program GRF-490-506 23,646 22,854 - 22,227 518047 286 Alzheimer's Respite GRF-490-512 454,936 508,017 - 417,937 518308 286 Home Care Ombudsman GRF-490-510 197,856 197,856 - 179,964 518315 286 Senior Block Grant GRF-490-411 1,024,315 982,966 - 992,055 Total Department of Aging $ 1,759,807 - 1,662,803
Ohio Department of Development 440003 220 Ohio Empowerment CMDD-00-018 666,666 - 30,687 - 460002 220 Rickenbacker - Woods Museum - 475,000 - - 75,816 442005 220 Clean Ohio - Jeffrey Mining Site - 3,000,000 1,257,266 - 1,257,266 443009 220 Clean Ohio - AC Humko Project 3,000,000 1,156,235 - 833,302 593003 220 Frank Road/Harmon Road Improvements - 150,000 150,000 - 75,000 518482 286 Service Coordination Program - 43,910 43,910 - 44,259 Total Department of Development $ 2,607,411 30,687 2,285,643
Ohio Environmental Protection Agency 513024 286 Ohio Bio Blitz 1,000 - - 714 504053 251 Columbus Environmental Asthma 03M-031 4,983 - - 4,265 Total Ohio Environmental Protection Agency - - 4,979 264 Ohio Department of Transportation 313001 220 CAD/FMS Improvements - 487,603 478,725 - -
Ohio Department of Health 501032 251 TB Enhancement/Tobacco Settlement - 486,860 137,000 - 137,622 502035 251 2002 Community Access Program J991 105,561 - - 437 503035 251 2003 Community Access Program K680 52,800 25,600 - 52,458 504058 251 2004 Women's Health Initiative 54,000 54,000 - 54,000 505058 251 2005 Women's Health Initiative 142,414 71,563 1,760 34,526 508040 251 Ohio Childhood Automobile - 15,000 - 5,770 8,140 508001 251 State Health Subsidy - 210,042 209,960 34,107 297,213 508318 251 STD Diagnostic & Treatment Services - 108,000 - - 11,065 509016 251 1999 Ohio Immunization Action Plan - 66,800 250 - 4,372 Total Ohio Department of Health $ 498,373 41,637 599,833
Department of Natural Resources 510102 286 Scioto Peninsula -12,000,000 - 86 86 510202 286 2002 Scioto Peninsula -4,750,000 1,654,904 - 1,522,382 510206 286 Spring & Long Park -7,750,000 5,330,222 - 3,856,052 510302 286 Scioto Peninsula -2,000,000 174,199 - 174,199 510428 286 North Bank Park -1,000,000 152,902 - 426,187 512008 286 2002 Angler Education -3,352 - - 213 513008 286 2003 Angler Education -1,102 - - 1,060 513023 286 Alum Creek Trail - 420,000 420,000 - 44,038 513026 286 Nature Works - Sills Park Improvements - 121,766 - - 121,766 592001 220 2002 Recycle Ohio Grant - 140,960 - - 93 593001 220 2003 Recycle Ohio Grant - 141,500 26,060 - 5,605 594001 220 2004 Recycle Ohio Grant - 142,000 113,200 28,419 181,300 Total Department of Natural Resources $ 7,871,487 28,505 6,332,981 Exhibit F-1 (continued)
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures Department of Rehabilitation and Corrections 254002 220 2004 Misdemeanor Diversion - 146,205 36,551 - 59,354 253002 220 2003 Misdemeanor Diversion - 140,790 108,300 - 85,683 Total Department of Rehabilitation and Corrections $ 144,851 - 145,037
Ohio Arts Council
510301 286 PAINT 2003 -20,635 20,635 - 1,540 510403 286 2004 Festival Latino - OAC - 15,170 - - 15,170 518626 286 Music in the Air-Donations/Grants - 12,310 - 184,444 140,622 Total Ohio Arts Council $ 20,635 184,444 157,332
Ohio Public Works Commission 510764 764 Blauser Farm - Riparian Corridor - 478,100 478,100 - 478,100 513764 764 Clean Ohio - Cherry Bottom Park - 7,426 7,426 - - 514027 764 Alum Creek - Cooper Road - 520,125 520,125 - 518,625 514764 764 Glen Echo Ravine Restoration - 230,800 - - 180,963 569020 763 Group 8 Intersection Improvements CCJ04 1,690,848 - - 129 560002 764 Group 9 Intersection Improvements CC12C 1,166,459 6,167 - 7,837 560004 764 Steltzer Road Bridge Replacement - 350,000 350,000 - - 560005 763 Chatterton Road Improvement CCK01 3,495,131 31,551 - - 593006 763 Hard Road CCN01 400,000 1,391,218 - - 560008 764 ADA Curb Ramps CC07D 472,560 24,682 - -
265 561002 764 Greenlawn Avenue Improvements CC03D 5,297,824 - 992,477 696,920 563001 763 ADA Curb Ramps CC02F 4,389,627 3,781,373 13,099,515 3,864,212 563002 763 ADA Curb Ramps CCO09 1,300,000 - - 1,276,623 590410 764 Lane Avenue CC01E 2,425,740 1,459,388 10,366,026 4,974,568 Total Ohio Public Works Commission $ 8,050,030 24,458,018 11,997,977
From the Franklin County A.D.A.M.H. Board: 501029 251 2001 ADA Prevention Services -54,166 - - 7,118 502029 251 2002 ADA Prevention Services 66,916 - 1,020 1,026 503029 251 2003 ADA Prevention Services 57,230 48,604 25,000 52,620 Total Franklin County A.D.A.M.H Board 48,604 26,020 60,764
Other Agency 323002 220 2003 State Domestic Preparedness 03-DG-E-C103 1,458,600 - - 17,007 333014 220 2003 Truancy Deterrence Program 02-JJ-DP2-J106 21,769 10,157 - 3,181 334014 220 2004 Truancy Deterrence Program 03-JJ-DP2-J106 26,059 18,812 - 24,415 344005 220 2004 PUCO Hazardous Material Training 5,325 3,467 - 3,375 503015 251 2003 In-Home Parenting K314 75,000 64,058 - 69,423 504050 251 2004 Minority Health Month MHM03-82 2,000 3,636 - 3,636 504054 251 2003 Community Chats MGS03-02 5,000 - - 3,063 504056 251 Indoor Radon 10,935 2,320 - 624 Total Other Agency 102,450 - 124,724
Total State Assistance - $ 21,582,373 24,769,311 23,372,073 Exhibit F-1 (continued)
City of Columbus, Ohio Schedule of Receipts and Expenditures of Federal, State, and County Awards For the period ended December 31, 2004 City Match and Grant Grant Award Miscellaneous No. (1) Fund Grant Title Grant No. (2) (3) Receipts Receipts Expenditures County Grants A.D.A.M.H. Board 501031 251 2001 Outpatient Treatment - 472,744 - - 500 502031 251 2002 Outpatient Treatment - 357,896 - 62 6,767 503031 251 2003 Outpatient Treatment - 284,296 417,120 110,771 413,268 518018 286 Volunteer Guardianship Program - 47,977 82,093 13,385 88,669 Total A.D.A.M.H. Board $ 499,213 124,218 509,204 Board of Health
593002 220 2003 Comprehensive Antidumping Enforcement 60,078 - 15,019 4,593 594022 220 2004 Comprehensive Antidumping Enforcement 66,880 - 15,410 16,112 504251 251 Project Love County Project 60,000 60,000 - 53,019 Total Board of Health $ 60,000 30,429 73,724 Franklin County Department of Jobs and Family Services 501021 251 2001 FCCS Intake & Investigations - 131,401 38,873 - 4 504021 251 FCCS Intake & Investigations 142,809 106,410 - 139,836 501034 251 Teen Pregnancy Prevention - 74,653 67,157 - 60,041 503046 251 Help Me Grow Direct Services - 455,189 350,872 - 421,437 Total Franklin County Department of Jobs and Family Services $ 563,312 - 621,318 Franklin County Commissioners 518335 286 Franklin County Seniors Options - 2,337,078 2,337,078 160 2,346,233
266 504055 251 TB Prevention & Control - 1,421,187 1,114,744 25,142 1,109,589 Total Franklin County Commissioners $ 3,451,822 25,302 3,455,822
Other Agency 513005 286 2003 Health and Wellness 10,184 - - 9,537 514005 286 2004 Health and Wellness 8,656 8,656 - - 508052 251 Chemical Emergency Preparedness - 62,242 - - 99,336 441008 220 CMHA Homebuyer Assistance 120,000 15,000 - 30,000 Total Other Agency $ 23,656 - 138,873 Total County Assistance 4,598,003 179,949 4,798,941 Total Private Assistance, net 469,091 222,666 868,009 Total State Assistance (See above) 21,582,373 24,769,311 23,372,073 Total Federal Assistance - Reporting Entity (See above) 84,312,685 35,977,429 159,520,706 Total Assistance 110,962,152 61,149,355 188,559,729 Increase (decrease) in Accrued Grant and Contract Revenue (52,678) Total Grant and Contract Revenue $ 110,909,474 CITY OF COLUMBUS, OHIO
Notes to Schedule of Receipts and Expenditures of Federal, State, and County Awards December 31, 2004
Note A-General
The accompanying Schedule of Receipts and Expenditures of Federal, State, and County Awards (the Schedule) presents the activity of all federal, state and county award programs of the City of Columbus, Ohio (the City). The City’s reporting entity is defined in Note A to the City’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule. Note B-Basis of Accounting
The accompanying Schedule is presented using the cash basis of accounting in which revenues are recognized when received and expenditures are recognized when paid.
Note C-Relationship to Basic Financial Statements
Grant revenues are reported in the City’s special revenue and capital projects funds. See the Schedule for the reconciliation between the fund financial statements prepared in accordance with generally accepted accounting principles (GAAP) and the Schedule prepared on the cash basis of accounting.
Note D-Schedule References
1. Grant No. represents the City’s Performance Accounting System classification structure and is used for internal purposes only. 2. Grant number for pass-through grants is the State of Ohio’s grant number. 3. Grant award amounts represent grantor’s share only. 4. The P.A.S.S.P.O.R.T. program is funded by both federal and state Medicaid. The amount presented is the federal portion only.
Note E-Loans Outstanding
The City administers loan programs with funding received from the Department of Housing and Urban Development. Following are the loan balances outstanding for these programs as of December 31, 2004:
Federal CFDA Amount Program Title Number Outstanding Community Development Block Grant 14.218 $36,415,271 HOME Investment Partnership 14.239 40,890,748 Housing Development Grant Program 14.174 1,057,368 Homeownership Opportunities For People Everywhere (HOPE) 14.185 89,200 Rental Rehabilitation 14.230 2,529,543 Section 108 14.246 723,397 Urban Development Action Grant 14.221 2,263,646
267
CITY OF COLUMBUS, OHIO
Notes to Schedule to Receipts and Expenditures of Federal, State, and County Awards December 31, 2004
Note F - Subrecipients Of the federal expenditures presented in the schedule, the City provided federal awards to subrecipients as follows: Federal Amount CFDA Provided to Number Subrecipients Children's Hospital, Inc. 10.557 $ 333,022
Lifecare Alliance 10.572 96,360
Senior Independence 14.191 23,040 Franklin County 14.191 36,399 Total CFDA 14.191 59,439
Center for New Directions 14.218 27,032 Columbus Compact, Inc. 14.218 142,976 Columbus Housing Partnership 14.218 131,485 Columbus Literacy Council 14.218 83,532 Columbus Neighborhood Design 14.218 235,683 Columbus Urban Growth Corp. 14.218 172,934 Columbus Urban League 14.218 195,443 Columbus Works, Inc. 14.218 76,130 Community Development Collaborative 14.218 149,760 Community Shelter Board 14.218 388,622 East Fifth Avenue Business Association, Inc. 14.218 2,188 Franklinton Board of Trade 14.218 34,395 Godman Guild Association 14.218 10,369 Greater Hilltop Community Development Co. 14.218 37,283 Greater Linden Development Corp. 14.218 66,691 Homes on the Hill Community 14.218 31,514 Long Street Business Association 14.218 15,150 Main Street Business Association 14.218 36,993 Mid Ohio Regional Planning Commission 14.218 33,943 Mt. Vernon Ave. District Improvement Association 14.218 14,540 Parsons Ave. Merchants Association 14.218 25,201 Private Industry Council, Inc. 14.218 135,887 Short North Business Association 14.218 36,191 St. John Learning Center 14.218 31,891 University Community Business Association 14.218 34,608 Total CFDA 14.218 2,150,441
Community Shelter Board 14.231 342,531
Community Development Collaborative 14.239 246,266
Columbus Aids Task Force 14.241 459,198 Licking County Coalition For Housing 14.241 73,072 Total CFDA 14.241 532,270
268 CITY OF COLUMBUS, OHIO
Notes to Schedule to Receipts and Expenditures of Federal, State, and County Awards December 31, 2004
Federal Amount CFDA Provided to Number Subrecipients Columbus Compact, Inc. 14.244 5,007,861
Ohio CDC Association 14.900 14,641
Mid Ohio Regional Planning Commission 20.600 7,500
Alzheimer's Association 93.044 17,732 American Red Cross Of Greater Columbus 93.044 2,372 American Red Cross-Central Ohio Region 93.044 66,043 Catholic Social Services, Inc. 93.044 414,224 Columbus Neighborhood Health Center 93.044 13,623 Community Action Agency Of Fayette County 93.044 20,676 Community Action Organization 93.044 21,097 Elder Choices Of Central Ohio 93.044 127,378 Fairhope Hospice & Palliative Care 93.044 75,085 L.E.A.D.S. Community Action Agency 93.044 2,474 Legal Aid Society Of Columbus 93.044 43,777 Licking County Aging Program 93.044 59,220 Lifecare Alliance 93.044 297,296 Meals On Wheels-Older Adult Alternatives 93.044 22,274 Ohio State Legal Services Association 93.044 21,053 Pickaway County Commission On Aging 93.044 61,804 Pickaway County Community Action 93.044 3,900 Salvation Army 93.044 6,325 Senior Independence 93.044 21,340 Senior Services for Independent Living 93.044 66,729 Union County Agency Transportation Services 93.044 25,977 Union County 93.044 15,000 Total CFDA 93.044 1,405,399
Council For Older Adults 93.045 108,125 Licking County Aging Program 93.045 241,851 Lifecare Alliance 93.045 1,788,595 Meals On Wheels-Older Adult Alternatives 93.045 179,416 Pickaway County Commission On Aging 93.045 105,207 Total CFDA 93.045 2,423,194
Council For Older Adults 93.048 15,882 Licking County Aging Program 93.048 16,523 Meals On Wheels-Older Adult Alternatives 93.048 13,335 Total CFDA 93.048 45,740
Community Action Agency Of Fayette County 93.052 28,121 Council For Older Adults 93.052 48,825 Licking County Aging Program 93.052 52,566 Meals On Wheels-Older Adult Alternatives 93.052 57,742 Pickaway County Commission On Aging 93.052 22,660 Franklin County 93.052 208,175 Total CFDA 93.052 418,089
Franklin County Board of health 93.268 5,000
269 CITY OF COLUMBUS, OHIO
Notes to Schedule to Receipts and Expenditures of Federal, State, and County Awards December 31, 2004
Federal Amount CFDA Provided to Number Subrecipients
Children's Hospital 93.283 15,000
Private Industry Council, Inc. 93.558 285,238
Catholic Social Services, Inc. 93.568 3,800 Council For Older Adults 93.568 1,900 Elder Choices Of Central Ohio 93.568 2,400 Meals On Wheels-Older Adult Alternatives 93.568 2,400 Pickaway County Commission On Aging 93.568 1,900 Union County 93.568 950 Total CFDA 93.568 13,350
Columbus Compact, Inc. 93.667 107,008
Alzheimer's Association 93.778 15,955 Catholic Social Services, Inc. 93.778 7,751 Council for Older Adults 93.778 105,575 Fairhope Hospice & Palliative Care 93.778 28,882 Jewish Family Services 93.778 480 L.E.A.D.S. Community Action Agency 93.778 12,721 Licking County Aging Program, Inc. 93.778 332,878 Lifecare Alliance 93.778 1,316,943 Meals on Wheels-Older Adult Alternatives 93.778 150,702 Pickaway County Commission On Aging 93.778 64,540 Salvation Army 93.778 45,572 Senior Independence 93.778 977,554 Senior Services For Independent Living 93.778 103,008 Total CFDA 93.778 3,162,561
Neighborhood House, Inc. 93.926 176,352 OSU School of Public Health 93.926 19,043 Total CFDA 93.926 195,395
Children's Research Institute 93.940 36,534 Columbus Aids Task Force 93.940 142,097 Total CFDA 93.940 178,631
Children's Hospital 93.994 439,824 Ohio State University 93.994 107,228 OSU Research Foundation 93.994 28,013 Total CFDA 93.994 575,065
Total federal awards provided to subrecipients $ 17,620,001
270 Illustrative Schedule of Findings and Questioned Costs
Section I—Summary of Auditors’ Results
1. The independent auditors’ report on the financial statements expressed an unqualified opinion.
2. No reportable conditions in internal control over financial reporting were identified.
3. No instances of noncompliance considered material to the financial statements were disclosed by the audit.
4. No reportable conditions in internal control over compliance with requirements applicable to major federal programs were identified.
5. The independent auditors’ report on compliance with requirements applicable to major federal award programs expressed an unqualified opinion.
6. The audit disclosed findings which are required to be reported by OMB Circular A-133.
7. The organization’s major programs were:
10.557 Special Supplemental Nutritional Program for Women, Infants and Children
93.778 Medical Assistance Program (Passport)
14.244 Empowerment Zones Program
20.205 Highway Planning & Construction
16.710 COPS
8. Dollar threshold used to distinguish between Type A and Type B programs: $2,713,546
9. The Auditee did qualify as a low-risk auditee as that term is defined in OMB Circular A-133.
Section II—Financial Statement Findings
No matters noted.
Section III—Federal Award Findings and Questioned Costs
#04-01 Cash Management
Grantor—US Department of Agriculture (CFDA 10.557 and 10.559), US Department of Justice (CFDA 16.710), US Department of Health and Human Services (CFDA 93.052, 93.118, 93.268, 93.977, 93.940, 93.994 and 97.999)
Sponsor Identification Number—Various
Project Number—Various
271 Criteria—The OMB Circular A-133 Compliance Supplement requires that interest earned on advances by local government grantees and subgrantees is required to be submitted promptly, but at least quarterly, to the Federal agency. Up to $100 per year may be kept for administrative expenses.
Finding—Ten programs consistently maintained a cash balance made up of Federal funds, on which the program did not earn interest. The City allocates interest to programs only when it has been requested by the program; otherwise, the interest is allocated to the General Fund. Based on the allocation procedures established by the Auditor’s Office, these should have earned $17,697 in interest. Interest was subsequently allocated to the programs by the City Auditor’s Office.
Effect—No interest was allocated to the program to either be returned to the Federal government or applied against grant reimbursements to reduce the amount owed by the Federal government.
Questioned Cost—There was $17,697 of unallocated interest to federal programs identified.
Recommendation—The City should develop written procedures to identify programs with cash balances and allocate a portion of interest earned on balances held back to programs that receive advances of Federal funds. These programs, in turn, should either remit this amount back to the grantor agency or report this amount as a reduction in Federal funding.
#04-02 Allowable Costs
Grantor—US Department of Transportation (CFDA 20.205)
Sponsor Identification Number—Various
Project Number—#540002 – “Freeway Management System” and #548077 – “Paving the Way”
Criteria—The A-133 OMB Compliance Supplement Part 3 Compliance Requirement, Allowable Cost Requirements states: “(1) Cost must be given consistent treatment through application of those generally accepted accounting principles appropriate to the circumstances. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances was allocated to the Federal award as an indirect cost and (2) Costs must conform to any limitations or exclusions set forth in the circulars, Federal laws, State or local laws, sponsored agreements or other governing regulations as to types or amounts of cost items.”
Finding—Freeway Management System and Paving the Way grant administrators did not reconcile supporting documentation to requests for reimbursement. Invoices that were submitted to the Ohio Department of Transportation (“ODOT”) listed hours worked that were not reconciled to the City’s payroll reports. Separate time sheets generated by the program managers were used to create the invoices, but there were differences between the invoices, the time sheets, and the payroll reports in 24 of the 27 payroll-related selections.
Also, there was inconsistent calculation of hourly reimbursement rates. ODOT approved an overhead rate for Paving the Way, but the approved rate did not equal the overhead rate used to bill the Ohio Department of Transportation for several selections.
Effect—Inconsistency in overhead rates and other inputs used in the calculation of eligible reimbursable costs could result in the reimbursement of unallowable costs.
Questioned Cost—The questioned costs were quantified by comparing total actual payroll costs paid by the City (less any City match) to total costs submitted for reimbursement. The result is over- reimbursement on the Freeway Management System Project of $17,880 and Paving the Way of $9,545.
272 Recommendation—We recommend that the City (1) determine written procedures at the onset of a grant for calculation of reimbursable costs; (2) obtain written clarification from the grantor for any subjective or questionable procedures that are not specifically outlined or are unclear in the grant; (3) implement a process of reconciling and reviewing an invoice before it is submitted to the State for reimbursement to ensure that programs are charged correctly. This process should include reconciliation to the centrally- generated payroll reports and an accurate system that tracks time spent on the grant versus time spent on other projects. These measures will prevent inconsistent reimbursement practices and provide clear guidelines and justification.
#04-03 Allowable Costs—Control
Grantor—US Department of Transportation (CFDA 20.205)
Sponsor Identification Number—Various
Project Number—#540002 – “Freeway Management System” and #548077 – “Paving the Way”
Criteria—The A-102 Common Rule and OMB Circular A-110 require that “entities that receive Federal Awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements.”
Findings—Based on discussions with the City Transportation Department personnel, they are not fully aware of the requirements of the A-133 Compliance Supplement, including portions of the allowable cost, period of availability, and reporting requirements. Due to this lack of understanding, procedures for supervisory review of reimbursement requests and periodic comparison of budget to actual expenditures are not clearly established.
Effect—Due to the lack of clearly-defined procedures, there is a possibility of unallowable costs being processed for reimbursement or non-compliance with grant requirements.
Recommendation—We recommend that the City Transportation Department (1) review all grant agreements to verify that current practices are in line with the grant requirements; (2) document this review by summarizing the grant requirements as they pertain to A-133 for future reference; and (3) implement policies and procedures that establish clear responsibility for preparation and review of all grant requirements.
273 Section IV - Summary of Prior Audit Findings
Number Finding Status Contact 03-01 The City of Columbus submitted This finding has been Henry Guzman, invoices to the Ohio Department of updated and repeated for Director of Public Transportation at a different the current year. See Service overhead rate than the overhead rate findings 04-02 and 04-03. established by the Ohio Department of Transportation of 82.6%. We noted in 17 of 19 transactions tested that the City requested reimbursement for overhead at a rate different than 82.6%, which resulted in an over-reimbursement to the City of Columbus of $4,019, offset by $4,287 of costs not reimbursed by the Ohio Department of Transportation, for a net amount of $268.
03-02 Project expenditures including Corrected Henry Guzman, vacation, sick days and overtime Director of Public were not properly approved by a Service project supervisor in accordance with the Department of Transportation’s policy. We noted 5 incidents out of 19 transactions tested that vacation and sick or overtime hours that were paid without proper signature of supervisor. 03-03 Included in the Schedule of Federal Corrected Henry Guzman, Awards was $4,056 in expenditures Director of Public relating to project 561119, the “I- Service 670, I-71, I-270 Project,” for which the Department of Transportation could not provide supporting contractual information. 03-04 Based on discussions with the City Division fiscal and project Henry Guzman, Transportation Department managers received training Director of Public personnel they are not fully aware in 2003 and 2004 on the Service of the requirements of the A-133 A-133 Compliance Compliance Supplement. Supplement. However, they are still not fully aware of all the grant management requirements. This finding will be repeated at 04-03.
274
Number Finding Status Contact 03-05 We noted one incident out of one There continues to be Henry Guzman, selection in the amount of $300 that discrepancies in the Director of Public the City didn’t request for reconciliation process. Service reimbursement. Upon further This finding will be inquiry we noted, the total of repeated within finding $7,650 expenditures in the current 04-02. year was not requested for reimbursement.
03-06 We noted in 3 of 4 transactions the Corrected Henry Guzman, City did not submit a request for Director of Public reimbursement from the Ohio Service Department of Transportation within reasonable period of time. Expenditures incurred in April, June and August 2003 which has not had an appropriate reimbursement request submitted as of December 31, 2003.
03-07 In 7 of 25 transactions tested, we Corrected Henry Guzman, noted the City had submitted for Director of Public reimbursements on vehicle usage, Service telephone, office supplies, etc., however, these expenditures were not coded in the general ledger as grant funds but were instead coded as operating funds. Total expenditures on 7 incidents were $3,397.
03-08 We noted expenditures in two Corrected Henry Guzman, projects funded by federal grants Director of Public were coded under either an Service incorrect grant number or coded to a non-grant fund. $2,378,437 in expenditures for Hard Road B project was included in an incorrect grant number and $676,130 in expenditures was included in a non- grant fund. The City made coding corrections at year-end.
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Number Finding Status Contact 03-09 We noted for the fiscal years ended Corrected Henry Guzman, December 31, 1997 through 2001 Director of Public expenditures under this project were Service not coded in the general ledger as grant funds and therefore were not reflected in the Schedule of Federal Awards.
03-10 We noted 2 incidents out of 3 that Corrected Henry Guzman, the City had submitted for Director of Public reimbursements on web hosting Service expenditures at full costs, which was 100% instead of 80%.
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